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Full text of "Basic laws and authorities on housing and community development, revised through January 3, 1979"

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[COMMITTEE PRINT 96-6] 



BASIC LAWS AND AUTHORITIES ON 

HOUSING AND COMMUNITY DEVELOPMENT 

REVISED THROUGH JANUARY 3, 1979 



COMMITTEE ON BANKING, FINANCE 

AND URBAN AFFAIRS 

HOUSE OF REPRESENTATIVES 

96th COXGRESS, FIRST SESSION 




Part 2 



Printed for the use of the 
Committee on Banking, Finance and Urban Affairs 



[COMMITTEE PRINT 96-6] 



BASIC LAWS AND AUTHORITIES ON 

HOUSING AND COMMUNITY DEVELOPMENT 

REVISED THROUGH JANUARY 3, 1979 



COMMITTEE ON BANKING, FINANCE 

AND URBAN AFFAIRS 

HOUSE OF REPRESENTATIVES 

96th COXGRESS, FIRST SESSION 




Part 2 



Printed for the use of the 
Committee on Banking, Finance and Urban Affairs 



U.S. GOVERNMENT PRINTING OFFICE 
45-705 O WASHINGTON : 1979 



For sale by the Superintendent of Documents, U.S. Government Printing Office 
Washington, D.C. 20402 



HOUSE COMMITTEE ON BANKING, FINANCE AND URBAN AFFAIRS 



HENRY S. REUSS, 
THOMAS L. ASHLEY, Ohio 
WILLIAM S. MOORHEAD, Pennsylvania 
FERNAND J. ST GERMAIN, Rhode Island 
HENRY B. GONZALEZ, Texas 
JOSEPH G. MINISH. New Jersey 
FRANK ANNUNZIO, Illinois 
JAMES M. HANLEY, New York 
PARREN J. MITCHELL, Maryland 
WALTER E. FAUNTROY, 

District of Columbia 
STEPHEN L. NEAL, North Carolina 
JERRY M. PATTERSON, California 
JAMES J. BLANCHARD, Michigan 
CARROLL HUBBARD, Jr., Kentucky 
JOHN J. LaFALCE, New York 
GLADYS NOON SPELLMAN, Maryland 
LES AuCOIN, Oregon 
DAVID W. EVANS, Indiana 
NORMAN E. D AMOURS, New Hampshire 
STANLEY N. LUNDINE, New York 
JOHN J. CAVANAUGH, Nebraska 
MARY ROSE OAKAR, Ohio 
JIM MATTOX, Texas 
BRUCE F. VENTO, Minnesota 
DOUG BARNARD, Georgia 
WES WATKINS, Oklahoma 
ROBERT GARCIA, New York 
MIKE LOWRY, Washington 

Paul Nelson, Clerk end Staff Director 

Michael P. Flaherty, General Counsel 

Mercer L. Jackson, Minority Staff Director 



Wisconsin, Chairman 

J. WILLIAM STANTON, Ohio 

CHALMERS P. WYLIE, Ohio 

STEWART B. McKINNEY, Connecticut 

GEORGE HANSEN, Idaho 

HENRY J. HYDE, Illinois 

RICHARD KELLY, Florida 

JIM LEACH, Iowa 

THOMAS B. EVANS, Jr., Delaware 

S. WILLIAM GREEN, New York 

RON PAUL, Texas 

ED BETHUNE, Arkansas 

NORMAN D. SHUMWAY, California 

CARROLL A. CAMPBELL, Jr., 

South Carolina 
DON RITTER, Pennsylvania 
JON HINSON, Mississippi 



Subcommittee on Housing and Community Development 



THOMAS L. ASHLEY, Ohio, Chairman 

J. WILLIAM STANTON, Ohio 
CHALMERS P. WYLIE, Ohio 
STEWART B. McKINNEY, Connecticut 
RICHARD KELLY, Florida 
THOMAS B. EVANS, Jr., Delaware 
S. WILLIAM GREEN, New York 
JIM LEACH, Iowa 
ED BETHUNE, Arkansas 
DON RITTER, Pennsylvania 



WILLIAM S. MOORHEAD, Pennsylvania 
FERNAND J. ST GERMAIN, Rhode Island 
HENRY B. GONZALEZ, Texas 
JAMES M. HANLEY, New York 
WALTER E. FAUNTROY, 

District of Columbia 
JERRY M. PATTERSON, California 
JOHN J. LaFALCE, New York 
LES AuCOIN, Oregon 
GLADYS NOON SPELLMAN, Maryland 
JAMES J. BLANCHARD, Michigan 
DAVID W. EVANS, Indiana 
STANLEY N. LUNDINE, New York 
MARY ROSE OAKAR, Ohio 
BRUCE F. VENTO, Minnesota 
WES WATKINS, Oklahoma 
ROBERT GARCIA, New York 
MIKE LOWRY, Washington 

Gerald R. McMurray, Staff Director 

Roger C. Faxon, Professional Staff Member 

Diane E. Dorius, Assistant Counsel 

Anthony Valanzano, Minority Counsel 



(II) 



LETTERS OF TRANSMITTAL 



December 1979. 
To: All Members of the Committee on Banking^ Finance and Urban 
Affairs: 

I hereby transmit for the use of the Committee on Banking, Finance, 
and Urban Affairs a revised Committee Print entitled, "Basic Laws 
and Authorities on Housing and Community Development." This com- 
pilation of laws and authorities is being updated in response to the 
numerous requests from Members of Congress and the public. The 
revision is made necessary by laws enacted, and numerous Executive 
Orders issued, since January 3, 1978, the date of our last revision. 

The laws. Executive Orders, and other authorities contained in this. 
Committee Print are those which authorize the functions and activities 
of the Department of Housing and Urban Development, or which are 
closely related to those functions and activities. They are arranged in 
accordance with their subject matter and are divided into the general 
categories of "Housing," "Community Development" and other "Gen- 
eral Laws Applicable to Housing and Community Development 
Activities." 

The Committee has been assisted in the preparation of this revised 
compilation by the Office of General Counsel in the Department of 
Housing and Urban Development. As in past years, the excellent tech- 
nical assistance provided by this Office has proved invaluable. 
Sincerely, 

Kexry S. Reuss, Chairman. 



December 1979. 
Hon. Henry S. Reuss, 

Chairman. Committee on Banking. Finance and Urban Affairs. 
U.S. House of Representatives. Washington. D.C. 

Dear Mr. Ciiairmax : Transmitted herewith for your consideration 
is an extensive revision of the Committee publication "Basic Laws and 
Authorities on Housina- and Community Develo]>ment." 

Due to the increased ^•olume and the rapidly changing nature of laws 
and authorities relating to housing and community development, pe- 
riodic revisions of this compilation of "Basic Lavs" is necessary. 

In transmitting this revised compilation, T would like to acknowl- 
edge the excellent assistance in its preparation we rex^eived from the 
Office of General Counsel, Department of Housing and Urban 
Development. 

Sincerely, 

Thomas L. Ashley, 
J hair-man^ Suh committee on Housing 

and CommAinity Development. 

(Ill) 



Digitized by the Internet Archive 
in 2013 



http://archive.org/details/basiclawsauthoriOOunit_0 



CONTENTS 



Part I — Basic Laws and Authorities on Housing ^^^^ 

National Housing goals and reports 1 

Department of H U D — General policy directives 9 

Organizational chart of HUD - 19 

Local housing assistance plans — fund allocation 21 

Fraud and false statements 23 

Employment of lower income persons 24 

Transfer of certain 221(d)(3) and 202 mortgages to 236 program _ _ 27 

Sale of surplus Federal land for housing 27 

Congressional Budget and Impoundment Control Act 29 

Joint Funding Simplification Act 75 

Department of Housing and Urban Development Independent 

Agencies Appropriation Act, 1978 81 

Supplemental Appropriations Act, 1977 89 

Appropriation Act — 1975 92 

Supplemental Appropriations — 1975 98 

Appropriation Act — 1974 100 

Agriculture-Environmental and Consumer Protection Appropria- 
tion Act — Excerpts — 1974 107 

Appropriations — Rent Supplement — 1973 107 

Appropriations — Disaster Assistance — 1973 107 

Appropriations — Revolving Fund — 1955 108 

Appropriations Act — 1977 110 

Appropriations Act — Emergency Homeowners Relief — 1976 116 

Supplemental Appropriations — 1976-_ 125 

Supplemental appropriations — 1978 130 

Appropriations Act — 1979 130 

Miscellaneous administrative provisions — HUD 138 

Advisory committees 140 

Civil defense — vulnerability to attack 141 

Jointly funded projects 141 

Byrd amendment — HUD contracts 142 

President's functions delegated to HUD 143 

Special Assistant for Cooperative Housing 145 

Strikes by HUD employees 145 

Vacancy in Office of Secretary 146 

Handicapped — accessibility to buildings 147 

Assigning emergency preparedness functicns 149 

Executive Order 12049 — Defense economic adjustment programs. 152 
Federal Coordinating Council for Science, Engineering, and Tech- 

nologj" 154 

Delegation of Presidential functions 155 

Coordination of Federal urban programs 156 

National Institute of Building Sciences 159 

Pai)erwork reduction 164 

Inspector General 165 

National Housing Act— HUD 173 

Housing renovation and modernization — title I 173 

Mortgage insurance — title II 184 

Miscellaneous — title V 309 

War housing insurance — title VI 320 

Insurance for investment in rental housing — title VII 337 

Armed services housing — title VIII 345 

National defense housing — title IX 358 

Mortgage insurance for land development — title X 366 

Mortgage insurance for group practice facilities — title XI 372 

FHA and VA interest rates 379 

(V) 



Part I — Basic Laws and Authorities on Housing — Continued Page! 

Rehabilitation Act of 1973 382 

Commission on mortgage interest rates 385 

Right of redemption 385 

Builders warranty 386 

Equity skimming 387 

Closing of military bases — mortgage defaults 387 

Low rent public housing — HUD 391 

Other HUD housing assistance programs 453 

Section 8 — Housing for large families J 452 

Emergency homeowners relief 453 

Housing for the elderly 461 

College housing 469 

Rehabilitation loans 479 

Rent supplements 485 

Urban homesteading 491 

Assistance for housing in Alaska 493 

Public housing — territories 495 

Research, studies, demonstrations and solar energy 503 

Counseling 537 

Training and technical assistance 549 

Prototype costs 553 

International housing 557 

Operating assistance for troubled multifamily housing projects _ I 562 

Public housing security 568 

State housing and development agencies 571 

Congregate housing | 575 

HUD Programs Regulating Housing 583 

Fair housing 583 

Interstate land sales 601 

Real estate settlement 615 

Mobile home construction and safety standards 627 

Secondary market for mortgage loans 645 

Federal National Mortgage Association — FN MA 654 

Government National Mortgage Association — GNMA 658 

Federal Home Loan Mortgage Corporation — FHLMC 693 

Participation sales 694 

Interest rates — Federal-State conflict 700 

Rural, defense and veterans housing programs 701 

Department of Agriculture — FmHA 701 

Department of Defense 739 

Veterans' Administration 751 

National financial institutions , _■ 776 

Department of Treasury, 776 

Investment powers 785 

Federal Home Loan Bank 797 

Federal savings and loan associations. 809 

Federal financing bank 831 

National housing partnerships 839 

Federal Reserve — Mortgage Disclosure 844 

Financial privacy i 848 

Index ^- (i) 

Part II — Basic Laws and Authorities on Community Development: 

Growth policy and planning 863 

New communities 863 

Intergovernmental Cooperation Act ' 885 

OMB Circular A-19 j 897 

0MB Circular A-95 911 

Executive Order 12044 — Improving Government regulations/— ; 937 

OMB Circular A-97 942 

Coastal Zone Management Act 947 

Comprehensive planning — section 701 977 

Clean air amendments 985 

Water Pollution Control Act 99I 

Excerpt from Department of Energy Act 997 

Excerpts from Energy Conservation and Production Act ^97 

Planned areawide development 1025 

Urban mass transportation — planning __ 1033 

Urban and community impact analyses 1_ I 1044 

Interagency coordinating council | 1045 



VII 

Part II — Basic Laws and Authorities on Community Development — Con. I'ase 

Community development assistance programs — HUD 1047 

Community development block grants^ 1047 

Community Reinvestment, 1083 

Neighborhood Reinvestment Corporation I 1085 

Neighborhood Self -Help Development I 1091 

Livable cities | 1095 

National Commission on Neighborhoods 1099 

Urban renewal 1103 

Pul)lic works planning advances 1151 

Public facilities loans 1155 

Public facilities grants 1161 

Model cities 1167 

Open space and urban \ )eautification 1175 

Historic preservation 1183 

Lead-Based Paint Poisoning Prevention Act 1195 

Property disposal — Los Alamos 1203 

Community development insurance programs — HUD 1227 

Property and crime insurance 1227 

Flood insurance 1245 

Rural and other non-HUD community development programs 1277 

Consolidaterl Farmers Home Administration 1277 

Rural Development Act 1303 

Headstart, Action and Community Economic Pevelopment 1311 

Regional action planning commissions 1321 

Appalachian Regional Development 1327 

Federal Advisory Council on Economic Development 1329 

Part III — General Laws Applicable to Housing and Community Reloca- 
tion Assistance 1335 

Civil rights 1365 

National policy for the environment 1389 

Disaster assistance 1425 

Participation in Presidential and national committees 1485 

Glossary 1525 

Index (i) 



§701 

PART II: BASIC LAWS AND AUTHORITIES 
ON COMMUNITY DEVELOPMENT 

NEW COMMUNITIES 

EXCERPTS FROM HOUSING AND URBAN DEVELOPMENT ACT OF 1970 

[Public Law 91-609, 84 Stat. 1791; 42 U.S.C. 4501] 

TITLE YII— NATIONAL URBAN POLICY AND NEW 
COMMUNITY DEVELOPMENT ^ 

SHORT TITLE AND STATEMENT OF TURPOSE 

Sec. 701. (a) This title may be cited as "National Urban Policy ^ 
and New Community Development Act of 1970". 

(b)^ It is the policy of the Congress and the purpose of this title to 
provide for the development of a national urban policy and to encour- 
age the rational, orderly, efficient, and economic growth, development, 
and redevelopment of our States, metropolitan areas, cities, counties, 
towns, and communities in predominantly rural areas which demon- 
strate a special potential for accelerated growth; to encourage the 
prudent use and conservation of energy and our natural resources; 
and to encourage and support development which will assure our 
communities and their residents of adequate tax bases, community 
services, job opportunities, and good housing in well-balanced neigh- 
borhoods in socially, economically, and physically attractive living 
environments. 

Part A — Development of a National Urban Policy * 

FINDINGS AND DECLARATION OF POLICY 

Sec. 702. (a)^ The Congress finds that rapid changes in patterns of 
urban settlement, iachiding change in population distribution and eco- 
nomic bases of urban areas, have created an imbalance between the 
Nation's needs and resources and seriously threaten our physical and 
social environment, and the financial viability of our cities, and that 



» Sec. 601(d) of the Honsinff and Community Development Act of 1977. Public Law 
95-128, approved October 3 2, 1977. amended Title VII bv deleting "URBAN GROWTH" 
and Inserting in lieu thereof "NATIONAL URBAN POLICY". 

^^''^^S- 601(a) of the Housing and Community Development Act of 1977, Public Law 
95-128. approved October 12. 1977. a'-en'^ed snhsection (a) by striking out "Urban 
Growth and inserting in Heu thereof "National Urban Policy". 

rvr^^^o- 601(a) of the Housing and Community Development Act of 1977, Public Law 
^^rl^^' a.T)proved October 12. 1977, amended subsection (b) as set forth In the text, 
rvtr ,oo 601(e) of the Housing and Community Deve'onment Act of 1977, Public Law 
95-128. approved October 12, 1977, amended part A by deleting "Growth". 
ftK 100 601(c) of the Housing and Community Development Act of 1977, Public Law 
95-128, approved October 12, 1977, amended section 702(a) as set forth in the text. 



863 



§702 NEW COMMUNITIES 

the economic and social development of the Nation, the proper con- 
servation of our energy and other natural resources, and the achieve- 
ment of satisfactory living standards depend upon the sound, orderly, 
and more balanced development of all areas of the Nation. 

(b)^ The' Congress further finds that Federal programs affect the 
location of population, economic growth, and the character of urban 
development; that such programs frequently conflict and result in 
undesirable and costly patterns of urban development and redevelop- 
ment which adversely affect the environment and wastefuUy use 
energy and other natural resources ; and that existing and future pro- 
grams must be interrelated and coordinated within a system of orderly 
development and established priorities consistent with a national 
urban policy. 

(c) To promote the general welfare and properly apply the re- 
sources of the Federal Government in strengthening the economic and 
social health of all areas of the Nation and more adequately protect 
the physical environment and conserve energy and other natural re- 
sources, the Congress declares that the Federal Government, consistent 
with the responsibilities of State and local government and the private 
sector, must assume responsibility for the development of a national 
urban policy which shall incorporate social, economic, and other appro- 
priate factors. Such policy shall serve as a guide in making specific 
decisions at the national level which affect the pattern of urban devel- 
opment and redevelopment and shall provide a framework for devel- 
opment of interstate. State, and local urban policy.^ 

(d)^ The Congress further declares that the national urban policy 
should — 

(1) favor i)attems of urbanization and economic development 
and stabilization which offer a range of alternative locations and 
encourage the wise and balanced use of physical and human re- 
sources in metropolitan and urban regions as well as in smaller 
urban places which have a potential for accelerated growth; 

(2) foster the continued economic strength of all parts of the 
United States, including central cities, suburbs, smaller com- 
munities, local neighborhoods, and rural areas ; 

(3)^ encourage patterns of development and redevelopment 
which minimize disparities among States, regions, and cities ; 

(4) treat comprehensively the problems of poverty and em- 
ployment (including the erosion of tax bases, and the need for 
better community services and job opportunities) which are asso- 
ciated with disorderly urbanization and rural decline; 

(5) develop means to encourage good housing for all Ameri- 
cans without regard to race or creed ; 

(6) refine the role of the Federal Government in revitalizing 
existing communities and encouraging planned, large-scale urban 
and new community development ; 

(7) strengthen the capacity of general governmental institu- 
tions to contribute to balanced urban growth and stabilization; 
and 



1 Sec. 601(b) of the Housing and Community Development Act of 1977, Public Law 
95-128, approved October 12, 1977, amended section 702(b) as set forth in the text. 

2 Sec. 601(a)(3) of the Housing' and Community Development Act of 1977, approved 
October 12, 1977, amended section 702(c) to read as set forth in the text. 

2 Sec. 601(b)(4) of the Housinpr and Community Development Act of 1977, Public Law 
95^128, approved October 12, 1977, amended subsections 702(d), (d)(3), and (d)(8) to 
read as set forth in the text. 

864 : 



NEW COMMUNITIES §703 

(8)^ facilitate increased coordination in the administration of 
Federal programs so as to encourage desirable patterns of urban 
development and redevelopment, encourage the prudent use of 
energy and other natural resources, ana protect the physical 
environment. 

NATIONAL. URBAN POLICY REPORT '^ 

Sec. 703.^ (a) The President shall transmit to the Congress during 
February 1978, and during February of every even-numbered year 
thereafter, a Report on National Urban Policy which shall contribute 
to the forjjiulation of such a policy and in addition shall include — 

(1) information, statistics, and significant trends relating to the 
pattern or urban development for the preceding two years ; ^ 

(2) a summary of significant problem^s facing the United States 
as a result of urban trends and developments affecting the well- 
being of urban areas ; ^ 

{"6}'^ an examination of the housing and related community 
development problems experienced by cities undergoing a growth 
rate which equals or exceeds the national average ; 

(4)^ an evaluation of the progress and efi'ectiveness of Federal 
efforts designed to meet such problems and to carry out the 
national urban policy ; 

(5)^ an assessment of the policies and structure of existing and 
proposed interstate planning and developments affecting such 
policy; 

((5;-^ a review of State, local, and private policies, plans, and 
programs relevant to such policy ; 

[i)^ current and foreseeable needs in the areas served by poli- 
cies, plans, and programs designed to carry out such policy, and 
the steps being taken to meet such needs ; and 

(8)^ recoinmenchitions for programs and policies for carrying 
out such policy, including such legislation and administrative 
actions as may be deemed necessary and desirable. 

(b) The President may transmit from time to time to the Congress 
supplementary reports on urban growth which shall include such sup- 
plementary and revised recommendations as may be appropriate. 

(c) To assist in the preparation of the National Urban Policy Re- 
port - and any supplementary reports, the President may establish an 
advisorv board, or seek the advice from time to time of temporary ad- 
visory boards, the members of whom shall be drawn from among 



^ Sec. 601(b)(4) of the Housincr and Community Development Act of 1977. Public Law 
95-128, approved October 12, 1977, amended subsections 702 (d), (d)(3), and (d)(8) to 
read as set forth In the text. 

-Sec. 601(c) amended ser>tion 703(a) by deleting the section headinc which read 
"URBAN GROWTH REPORT" and inserting in lieu thereof "NATIONAL URBAN 
POLICY REPORT"; and also by deleting the material preceding paragraph (1) of sub- 
section (a) and inserting in lieu thereof the material as set forth in the text. 

-Sec. 601(c) of the Housing and Community Development Act of 1977 Public Law 
95-128. approved October 12, 1977, amended section 703(a)(1) to read as set forth in 
the text. 

-Sec. 601(c) of the Housing and Community Development Act of 1977. Public Law 

9o-128. approved October 12, 1977. deleted "growth" after the word "urban" and inserted 

affecting the well-being of urban areas'' before the semicolon at the end of paragraph (2). 

•' S"c. 601(c) of the Housing and Conimunitv DeveloDment Act of 1077, Pul)lic Law 
95-128. approved October 12, 1077, amended section 703(a) by inserting a new para- 
graph (3) and by redesignating paragraphs (3) through (7) as paragraphs (4) through 
(8), respectively. 



865 



§710 NEW COMMUNITIES 

private citizens familiar with the problems of urban areas ^ and from 
among Federal officials, Governors of States, mayors, county officials, 
members of State and local legislative bodies, and others qualified to 
assist in the preparation of such reports. 

Part B — Development of New Communities 

findings and purpose 

Sec. 710. (a) The Congress finds that this Nation is likely to experi- 
ence during the remaining years of this century a population increase 
of about seventy-five million persons. 

(b) The Congress further finds that continuation of established 
patterns of urban development, together with the anticipated increase 
in population, will result in (1) inefficient and wasteful use of land re- 
sources which are of national economic and environmental importance ; 
(2) destruction of irreplaceable natural and recreational resources 
and increasing pollution of air and water; (3) diminished opportunity 
for the private homebuilding industry to operate at its highest 
potential capacity in providing good housing needed to serve the ex- 
panding population and to replace substandard housing; (4) costly 
and inefficient public facilities and services at all levels of govern- 
ment; (5) unduly limited options for many of our people as to where 
they may live, and the types of housing and environment in which 
they may live; (6) failure to make the most economic use of present 
and potential resources of many of the Nation's smaller cities and 
towns, including those in rural and economically de]3ressed areas, 
and decreasing employment and business and opportunities for their 
residents; (7) further lessening of employment and business oppor- 
tunities for the residents of central cities and of the ability of such 
cities to retain a tax base adequate to support vital services for all their 
citizens, particularly the poor and disadvantaged ; (8) further separa- 
tion of people within the metropolitan areas by income and by race ; 
(9) further increases in the distances between the places where people 
live and where they work and find recreation; and (10) increased cost 
and decreased effectiveness of public and private facilities for urban 
transportation. 

(c) The Congress further finds that better patterns of urban devel- 
opment and revitalization are essential to accommodate future popula- 
tion growth ; to prevent further deterioration of the Nation's physical 
and social environment ; and to make positive contributions to improv- 
ing the overall quality of life within the Nation. 

(d) The Congress further finds that the national welfare reouires 
the encouragement of well-planned, diversified, and economically 
sound new communities, including major additions to existing com- 
munities, as one of several essential elements of a consistent national 
program for bettering patterns of development and renewal. 

(e) The Congress further finds that desirable new communitv devel- 
opment on a significant national scale has been prevented by difficulties 
in (1) obtaining adequate financing at moderate cost for enterprises 
which involve large initial capital investment, extensive periods before 
investment can be returned, and irregular patterns of return; (2) the 



1 Sec. 601(c) of the Honsincr and Community Devplopment Act of 1977. Public Law 
95-128, approved October 12, 1977, amended section 703 to read as set forth in the text. 

i 866 



NEW COMMUNITIES §711 

timely assembly of sufficiently large sites in economically favorable 
locations at reasonable cost; and (3) making necessary arrangements, 
among all private and public organizations involved, for providing 
site and related improvements (including streets, sewer and water 
facilities, and other public and community facilities) in a timely and 
coordinated manner. 

(f) It is, therefore, the purpose of this part to provide private 
developers and State and local public bodies and agencies (including 
regional or metropolitan public bodies and agencies) with financial 
and other assistance necessary for encouraging the orderly develop- 
ment of well-planned, diversified, and economically sound new com- 
munities, including major additions to existing communities, and to 
do so in a manner which will rely to the maximum extent on private 
enterprise ; strengthen the capacity of State and local governments to 
deal with local problems; preserve and enhance both the natural and 
urban environment; increase for all persons, particularly members of 
minority groups, the available choices of locations for living and 
working, thereby providing a more just economic and social environ- 
ment; encourage the fullest utilization of the economic potential of 
older central cities, smaller towns, and rural communities ; assist in the 
efficient production of a steady supply of residential, commercial, and 
industrial building sites at reasonable cost; increase the capability 
of all segments of the home-building industry, including both small 
and large producers, to utilize improved technology in producing the 
large volume of well-designed, inexpensive housing needed to accom- 
modate population growth; help create neighborhoods designed for 
easier access between the places where people live and the places where 
they work and find recreation ; and encourage desirable innovation in 
meeting domestic problems whether physical, economic, or social. It 
is also the purpose of this part to improve the organizational capacity 
of the Federal Government to carry out programs of assistance for 
the development of new communities and the revitalization of the 
Nation's urban areas. 

DEFINTnONS 

Sec. 711. As used in this part — 

(a) The term "new community development program" means a 
program which is intended to result in a newly built community or a 
major addition to an existing community and which meets the eligi- 
bility standards set forth in section 712. 

(b) The term "private new community developer" means any pri- 
vate entity organized in a form satisfactory to the Secretary for car- 
rying: out one or more new community development programs. 

(c) The term "State land development agency" means any State 
or local public body or agency with authority to act as developer in 
carrying out one or more new community development programs. 

(d) The term "State" means any State of the United States, the 
District of Columbia, the Commonwealth of Puerto Eico, any terri- 
tory or possession of the United States, or any agency or instrumen- 
talitv of any of the foregoing. 

(e) The term "local public body or agency" means any public body 
or agency, including a political subdivision, created by or under the 
laws of a State or two or more States, or a combination of such bodies 
or agencies. 

867 



§712 NEW COMMUNITIES 

(f) The term "land development" means the process of clearing 
and grading land, making, installing, or constructing waterlines and 
water supply installations, sewerlines and sewage or waste disposal ^ 
installations, steam, gas, and electric lines and installations, roads, 
streets, curbs, gutters, sidewalks, storm drainage facilities, community 
or neighborhood central heating or air-conditioning systems,^ and 
other installations or work, whether on or off the site, which the Secre- 
tary deems necessary or desirable to prepare land for residential, com- 
mercial, industrial, or other uses, or to provide facilities for public or 
common use. The term "land development" includes the construction of 
public facilities, but does not include the construction of any other 
building unless it is (1) needed in connection with a water supply or 
sewage or waste disposal ^ installation, a community or neighborhood 
central heating or air-conditioning system,^ or a steam, gas, or electric 
line or installation, or (2) is to be owned and maintained by residents 
of the new commimity under joint or cooperative arrangements ap- 
proved by the Secretary. 

(g) The term "actual cost" means the costs (exclusive of rebates 
or discounts) incurred bjr a new community developer in carrying out 
the land development assisted under this Act. These costs may include 
amounts paid for labor, materials, construction contracts, land plan- 
ning, engineers' and architect's fees surveys, taxes, and interest during 
development, organizational and legal expenses, such allocation of 
general overhead expenses as are acceptable to the Secretary, and 
other items of expense incidental to development which may be ap- 
proved by the Secretary. If the Secretary determines that there is 
an identity of interest between the developer and a contractor, there 
may be included as a part of actual cost an allowance for the con- 
tractor's profit or risk an amount deemed reasonable by the Secretary. 

(h) The term "Secretary" means the Secretary of Housing and 
Urban Development. 

(i) The term ''New Community Development Corporation" ^ means 
the corporation established within the Department of Housing and 
Urban Development imder section 729. 

ELIGIBLE NEW COMMUNITr DEVELOPMENT 

Sec. 712. (a) A new community development program is eligible 
for assistance under this part onlj^ if the Secretary determines that 
the program (or the new community it contemplates) — 

(1) will provide an alternative to disorderly urban growth, 
helping preserve or enhance desirable aspects oi the natural ana 
urban environment or so improving general and economic condi- 
tions in established communities as to help reverse migration 
from existing cities or rural areas; 

(2) will be economically feasible in terms of economic base 
or potential for economic growth ; 

^Sec. 803(e)(1) of Housing and Community Development Act of 1974, Public Law 
93-383, 88 Stat. 633, approved August 22, 1974, substituted the words "sewage or waste 
disposal" for "sewage disposal" in the first and second sentences ; Section 803(e) (2) of this 
Act added the words "community or neighborhood central heating or alr-condltioning 
systems," after "storm drainage facilities," in the first sentence: and Section 803(e) (3) of 
this Act added the words ", a community or neighborhood central heating or air-condi- 
tioning system," after "disposal installation" in the second sentence. 

2 Sec. 803(a)(1) of Housing and Community Development Act of 1974, Public Law 
93-383, 88 Stat. 633, substituted "New Community Development Corporation" for "Com- 
munity Development Corporation" each place it appears in this Part B. 

868 



NEW COMMUNITIES §713 

(3) will contribute to the welfare of the entire area which will 
be substantially affected by the program and of which the land 
to be developed is a part : 

(4) is consistent with comprehensive planning, physical and 
social, determined by the Secretary to provide an adequate basis 
for evaluating the new community development program in 
relation to other plans (including State, local, and private plans) 
and activities involving area population, housing and develop- 
ment trends, and transportation, water, sewerage, open space, 
recreation, and other relevant facilities ; 

(5) has received all governmental reviews and approvals 
required by State or local law, or by the Secretary; 

(6) will contribute to good living conditions in the community, 
and that such community will be characterized by well balanced 
and diversified land use patterns and will include or be served by 
adequate public, community, and commercial facilities (including 
facilities needed for education, health and social services, recrea- 
tion, and transportation) deemed satisfactory by the Secretary; 

(7) makes sul3stantial provision for housing within the means 
of persons of low and moderate income and that such housing will 
constitute an appropriate proportion of the community's housing 
supply ; and 

(8)' will make significant use of advances in design and tech- 
nology with respect to land utilization, materials and methods 
of construction, and the provision of community facilities and 
services, 
(b) A new community development program approved for assist- 
ance under this part shall be undertaken by a private new community 
developer or State land development agency approved by the Secre- 
tary on the basis of financial, technical, and administrative ability 
which demonstrates capacity to carry out the program with reasonable 
assurance of its completion. 

GUARANTEES 

Sec. 713. (a) The Secretary (acting through the New Community 
Development Corporation) is authorized to guarantee, and enter into 
commitments to guarantee, the bonds, debentures, notes, and other 
obligations issued by or on behalf of private new community de- 
velopers and State land development agencies for the purpose of 
financing real property acquisition and land development and to com- 
pensate for the use of real property or the removal of liens or encum- 
brances on such property, pursuant to the new community develop- 
ment programs approved by the Secretary. The Secretary may make 
such guarantees and enter into such commitments upon sucli terms 
and conditions as he may prescribe consistent with the limitations and 
conditions contained in section 716; except that no obligation of any 
State land development agency shall be guaranteed under this section 
if the income from such obligation is exempt from Federal taxation. 
The SecretaiT is authorized to make grants to any State land develop- 
ment agency the obligations of which are guaranteed under this sec- 
tion in amounts equal to 30 per centum of the interest paid on such 
obligations.^ 

ao^of^l ®PL^*^^ ^^ Housing and Community Development Act of 1974, Public Law 93-383. 
88 btat. 633, approved August 22. 1974. amended the last sentence of section 713(a). 

869 



§714 NEW COMMUNITIES 

(b) The full faith and credit of the United States is pledged to the 
payment of all guarantees made under this section with respect to 
prmcipal, interest, and any redemption premiimis. Any such guaran- 
tee made by the Secretary shall be conclusive evidence of the eligi- 
bility of the obligations for such guarantee, and the validity of any 
guarantee so made shall be incontestable in the hands of a holder of 
nie guaranteed obligation. 

(c) The outstandmg bonds, debentures, notes or other obligations 
giiaranteed under this section with respect to a single new commu- 
nity development program shall involve a principal obligation in an 
amount (1) in the case of a State land development agency, not exceed- 
ing 100 per centum of the sum of the Secretary's estimate of the 
value of the real propertv before development, and his estimate of the 
actual cost of the land (Sevelopment, or (2) in the case of a private 
new community developer, not exceeding the sum of 80 per centum 
of the Secretary's estimate of the value of the real property before 
development and 90 per centum of his estimate of the actual cost of 
the land development. 

(d) The outstanding principal obligations guaranteed under this 
section with respect to a single new community development program 
shall at no time exceed $50,000,000. 

(e) The aggregate of the outstanding principal obligations guaran- 
teed under this section shall at no time exceed $500,000,000, which 
amount shall be increased by $195,500,000 on July 1, 1973.' 

LOANS 

Sec. 714. (a) The Secretary (acting through the New Community 
Development Corporation) is authorized, subject to the limitations 
and conditions contained in section 716, to make and enter into agree- 
ments to make loans to or on behalf of private new community de- 
velopers and State land development agencies for the purpose of 
assisting them to make interest payments on indebtedness incurred by 
them to finance new community development programs approved by 
him. Loans under this section shall be in amounts which do not exceed 
the amount of interest the Secretary estimates is payable on indebted- 
ness attributable to land acquisition or land development and shall be 
made only with respect to interest payments on indebtedness outstand- 
ing during an initial development period (not to exceed fifteen years) 
which the Secretary estimates to be prior to the time when land 
marketing activity is of sufficient volume to permit continued develop- 
ment under the new community development program without the 
benefit of fuither loans under this section. 

(b) The Secretary shall require that loans under this section shall 
be repaid, with interest and on terms and conditions satisfactory to 
him, commencing at such time as development progress and marKet- 
ing under the new community development program permit such 
repayment, but not later than fifteen years after the date the loan 
is made. Such loans shall bear interest at a rate specified by the Sec- 
retary which shall not be less than a rate determined by the Secretary 
of the Treasury taking into consideration the current average market 
yield on outstanding marketable obligations of the United States with 



1 Sec. 12 of Public Law 93-117. 87 Stat 421, approved October 2, 1973. Increasing 
authorization by $19^,500.000 on July 1, 1973. 

870 



NEW COMMUNITIES §716 

remaining periods to maturity comparable to the average maturities 
of such loans, plus one-eighth of 1 per centum. 

(c) The principal amount of the loans outstanding at any time 
imder this section with respect to a sin2fle new community develop- 
ment program shall not exceed $20,000,000. 

(d) The aggregate principal amount of the loans outstanding under 
this section shall at no time exceed $240,000,000. 

PUBLIC SERVICE GRANTS 

Sec. 715. In addition to providing assistance under the preceding sec- 
tions, the Secretary (acting through the New Community Development 
Corporation) may make public service grants (in such amounts and 
on such terms and conditions as he deems appropriate) to a State 
land development agency or to the State or local public body having 
responsibility for providinir the services involved to cover the cost of 
providin^r diirinof an initial period (not exceeding three years) essen- 
tial public services (including educational, health, and safety services) 
which the Secretary deems necessary adequately to serve the needs of 
the residents of the development prior to completion of permanent 
arrangements for the provision of such services. There are authorized 
to be appropriated such sums as may be necessary to carry out the 
purposes of this section. 

LIMITATIONS ON GUARANTEES AND LOANS 

Sec. 716. (a) No guarantee or loan shall be made under this part 
unless the Secretary has determined that the new community develop- 
ment program represents an acceptable financial risk to the United 
States, taking into consideration (1) the financial and security inter- 
ests of the United States, including the manner in which the developer 
proposes to finance and schedule land acquisition, land development, 
and marketing, and (2) the public purposes of this part and the spe- 
cial problems involved in financing new communities, including (i) 
the large amount of initial capital required to finance sound new 
communities, (ii) the extended period before initial returns can be 
expected, and (iii) the irregular pattern of cash returns characteristic 
of this type of development. 

(b) The Secretary shall take such steps as he considers reasonable to 
assure that bonds, debentures, notes, and other obligations guaranteed, 
or with respect to which interest loans are made, under this part will — 

(1) be issued to investors approved by, or meeting require- 
ments prescribed by, the Secretary, or if an offering to the public 
is contemplated, be underwritten upon terms and conditions 
approved by the Secretary ; 

(2) bear interest at a rate satisfactory to the Secretary; 

(3) contain or be subject to repayment, maturity, and other 
provisions satisfactory to the Secretary ; and 

(4) contain or be subject to provisions with respect to the pro- 
tection of the security interests of the United States, including 
any provisions deemed appropriate by the Secretary relating to 
subrogation, liens, and releases of liens, payment of taxes, cost 
certification procedures, escrow^ or trusteeship requirements or 
other matters. 

871 

45-705 0-79-2 



§718 NEW COMMUNITIES 

REVOLVING FUND 

Sec. 717. (a) The Secretary is authorized to establish a revolving 
fund to provide for (1) the timely payment of any liabilities incurred 
as the result of guarantees or grants under section 713; (2) making 
loans authorized under this part; (3) payment of obligations issued 
to the Secretary of the Treasury under subsection (b) of this section; 
and (4) any other program expenditures, including administrative 
and nonadministrative expenses. Such revolving fund shall be com- 
prised of (1) receipts from fees and charges; (2) recoveries under 
security, subrogation, and other rights; (3) repayments, interest 
income, and any other receipts obtained in connection with guarantees 
or loans made under this part; (4) proceeds of the obligations issued 
to the Secretary of the Treasury pursuant to subsection (b) of this 
section; and (5) such sums, which are hereby authorized to be appro- 
priated, as may be required for the payment of the obligations issued 
to the Secretary of the Treasury for the purpose of making grants to 
State land development agencies under section 713, and for other 
purposes under this part. Money in the revolving fund not currently 
needed for the purpose of this part shall be kept in cash on hand or 
on deposit, or invested in obligations of the United States or guar- 
anteed thereby, or in obligations, participations, or other instruments 
which are lawful investments for fiduciary, trust, or public funds. 

(b) The Secretary may issue obligations to the Secretary of the 
Treasury in an amount sufficient to enable the Secretary to carry out 
the functions authorized by this part. The obligations issued under 
this subsection shall have such maturities and bear such rate or rates 
of interest as shall be determined by the Secretary of the Treasury. 
The Secretary of the Treasury is authorized and directed to purchase 
any obligations so issued, and for that purpose he is authorized to 
use as a public debt transaction the proceeds from the sale of any 
securities issued under the Second Liberty Bond Act, and the purposes 
for which securities may be issued under that Act are extended to 
include purchases of the obligations, hereunder. 

(c) Notwithstanding any other provision of law relating to the 
acquisition, handling, improvement, or disposal of real and other 
property by the United States, the Secretary shall have power, for 
the protection of the interests of the fund authorized under this sec- 
tion, to pay out of such fund all expenses or charges in connection with 
the acquisition, handling, improvement, or disposal of any property, 
real or personal, acquired by him as a result of recoveries under se- 
curity, subrogation, or other rights. 

SUPPLEMENTARY GRANTS FOR PUBLIC FACILITIES 

Sec. 718. (a) The Secretary is authorized to make supplementary 
grants to any State, local public body or agency, or other entity ^ 
carrying out a new community assistance project, as defined in sub- 
section (c), if the Secretary determines that such project is necessary 
or desirable for carrying out a new community development program. 
In no case shall any grant under this section exceed 20 per centum of 
the cost of the new community assistance project for which the grant 

1 The words "State, local public body or agency, or other entity" were substituted for 
the words "State or local public body or agency" by sec. 7 of Public Law 92-213, approved 
December 22, 1971. 85 Stat. 775. 776. 

872 



NEW COMMUNITIES §719 

is made ; and in no case shall the total Federal contributions to the cost 
of such project be more than 80 per centum. 

(b) In carrying out his authority under this section, the Secretary 
shall, with respect to any new community assistance project assisted 
by grants administered by a Federal department or agency other than 
the Department of Housing and Urban Development, consult with 
such department or agency concerning the project; and he shall, for 
the purpose of subsection (a), accept the certification of such depart- 
ment or agency as to the cost of such project. 

(c) For the purposes of this section, a "new community assistance 
project" is a project assisted by grants under section 3 of the Urban 
Mass Transportation Act of 1964; section 120(a) of title 23, United 
States Code; section 19 of the Airport and Airway Development Act 
of 1970; title VI of the Public Health Service Act; title II of the 
Library Services and Construction Act; section 5 of the Land and 
Water Conservation Fund Act of 1965; title VII of the Housing Act 
of 1961 ; section 702 or 703 of the Housing and Urban Development 
Act of 1965, section 8 of the Federal Water Pollution Control Act; 
section 306(a) (2) of the Consolidated Farmers Home Administration 
Act ; section 103 or 104 of the Higher Education Facilities Act of 1963 ; 
or section 101(a) (1) of the Public Works and Economic Development 
Act of 1965 with respect to projects of a type eligible for assistance 
under any of the other provisions of law listed in this subsection, or a 
project or portion of a project consisting of the purchase, renovation, 
or construction of facilities, the purchase of land, or the acquisition 
of equipment or works of art assisted by contracts or grants under 
section 5 of the National Foundation on the Arts and the Humanities 
Act of 1965.^ 

(d) There are authorized to be appropriated for supplementary 
grants under this section not to exceed $36,000,000 for the fiscal year 
ending June 30, 1971, not to exceed $66,000,000 for each of the fiscal 
years ending June 30, 1972, and June 30, 1973, and not to exceed such 
sums as may be necessary for any fiscal year commencing after June 30, 
1973. Any amount so appropriated shall remain available until ex- 
pended, and any amounts autliorized for any fiscal year but not appro- 
priated may be appropriated for any succeeding fiscal year. In 
addition, the amounts authorized to be appropriated for grants under 
section 412 of the Housing and Urban Development Act of 1968 and 
the amounts appropriated thereunder shall be available for carrying 
out this section and shall remain available until appropriated and 
expended. 

TECHNICAL ASSISTANCE 

Sec. 719. The Secretary is authorized to provide, either directly or 
by contract or other arrangements, technical assistance to private new 
community developers and State land development agencies, or State 
and local public bodies and agencies to assist them in connection with 
planning and carrying out new community development programs. 

1 Sec. 803(d) of Honslnj: and Coramnnlty Development Act of 1974, Public Law 93-383, 
88 Stat. 633, approved August 22, 1974 amended section 718(c). 



873 



§720 NEW COMMUNITIES 



SPECIAL PLANNING ASSISTANCE 



Sec. 720. (a) The Secretary may, until October 1, 1979,^ enter into 
agreements with private new community developers and State land 
development agencies to provide financial assistance, in amounts not 
exceeding two-thirds of the estimated cost of such work, for planning 
new community development programs, including planning work 
which he determines will have special value in assuring that new com- 
munity development programs (1) will be fully responsive to social or 
environmental problems related to the public purposes of new com- 
munity development, or (2) will adequately provide for, or encourage 
the use of, new or advanced technology in support of program 
objectives. 

(b) The Secretary shall enter into agreements under this section 
only with respect to new community development programs which 
had been approved or are being actively considered for approval, 
having met such initial feasibility criteria as the Secretary may have 
prescribed, and, in the case of private new community developers, 
only with respect to planning work which the Secretary determines 
is in excess of that which would ordinarily be needed to establish final 
market, financial, and engineering feasibility for programs or projects 
of similar size and scope not subject to the special purposes of this 
part. The financial assistance extended pursuant to such agreements 
shall be subject to such terms and conditions, which, in the case of 
private new community developers, may include provisions for repay- 
ment where appropriate, as the Secretary may prescribe. 

(c) There are authorized to be appropriated for financial assistance 
under this section not to exceed $5,000,000, which limit shall be in- 
creased by $5,000,000 on July 1, 1971. Any amount appropriated under 
this section shall remain available until expended. 

FEES AND CHARGES 

Sec. 721. The Secretary is authorized to establish and collect fees 
for guarantees under this part, and may make such charges in connec- 
tion with guarantees, loans, and technical and other assistance under 
this part as he considers reasonable for the analysis of applications, 
appraisals, inspections, and other activities related to such assistance. 
On or before March 1, 1973, the Secretary shall make a report to the 
Congress concerning the fees and charges for guarantees under this 
part that he estimates will be adequate to provide income sufficient for 
a self-supporting guarantee program and concerning the relationship 
of other charges to costs incurred under this part. 

ENCOURAGEMENT OF SMALL BUILDERS 

Sec. 722. The Secretary shall adopt such requirements as he deems 
necessary to assure that new community assistance under this part 
will (1) help maintain a diversified, local homebuilding industry; 
(2) increase the capability of all segments of the homebuilding 

1 Sec. 19 of the Housing Authorization Act of 1976, Public Law 94-375, approved Au- 
gust 3, 1976, 90 Stat. 1067, amended section 720(a) of the Housing and Urban Develop- 
ment Act of 1970 by striking "June 30. 1975" and inserting in lieu thereof "October 1. 
1977" ; section 208 of the Housing and Community Development Act of 1977, Public Law 
95-128, approved October 12, 1977, amended section 720 by deleting 1977 and inserting 
in lieu thereof "1978." Extended further by Sec. 306, Housing and Community Develop- 
ment Amendments of 1979, PubUc Law 95-557, 92 Stat. 2080, approved October 31, 1978. 

, 874 



NEW« COMMUNITIES § 723 

industry, including both small and large producers, to participate, 
through an increased supply of building sites at reasonable costs and 
through improved technology, in producing the needed, large volume 
of well-designed, inexpensive housing; and (3) encourage broad par- 
ticipation by the homebuilding industry, particularly small builders. 

NEW COMMUNITY DEMONSTRATION PROJECTS 

Sec. 723. Upon specific authorization by the President and under 
applicable Federal law respecting the use of federally owned lands, 
the Secretary, utilizing funds made available for the purpose by the 
Congress, is authorized to plan and carry out large-scale projects 
demonstrating the development of new communities, which shall be 
designed to contribute to the achievement of the purposes of this part 
and serve as models for new community developments which could 
feasibly be carried out by other public and private developers. 

REAL PROPERTY TAXATION 

Sec. 724. Nothing in this part shall be construed to exempt any real 
property that may be acquired and held by the Secretary as a result 
of the exercise of lien or subrogation rights from real property taxa- 
tion to the same extent, according to its value, as other real property 
is taxed. 

AUDIT BY GENERAL ACCOUNTING OFFICE 

Sec. 725. Insofar as they relate to any guarantees, loans, or grants 
made pursuant to this part, the financial transactions of recipients of 
Federal assistance may be audited by the General Accounting Office 
under such rules and regulations as may be prescribed by the Comp- 
troller General of the United States. The representatives of the Gen- 
eral Accounting Office shall have access to all books, accounts, records, 
reports, files, and all other papers, things, or property belonging to 
or in use by such recipients pertaining to such financial transactions 
and necessary to facilitate the audit. 

GENERAL PROVISIONS 

Sec. 726. In the performance of, and with respect to, the functions, 
powers, and duties vested in him by this part, the Secretary, in addi- 
tion to any authority otherwise vested in him, shall — 

(1) have the functions, powers, and duties (including the 
authority to issue rules and regulations) set forth in section 402, 
except subsections (c) (2), (c) (4), (d), and (f), of the Housing 
Act of 1950: Provided^ That subsection (a)(1) of section 402 
shall not apply with respect to functions, powers, and duties 
under section 719 of this part; 

(2) have the power, notwithstanding any other provision of 
law, in connection with any assistance under this part, whether 
before or after any default, to provide by contract for the 
extinguishment upon default of any redemption, equitable, legal, 
or other right, title, or interest of the private new community 
developer or State land development agency in any mortgage, 
deed, trust, or other instrument held by or on behalf of the Secre- 

875 



§727 NEW COMMUNITIES 

tary for the protection of the security interests of the United 
States ; and 

(3) have the power to foreclose on any property or commence 
any action to protect or enforce any right conferred upon him by 
law, contract, or other agreement, and Bid for and purchase at any 
foreclosure or other sale any property in connection with which 
he has provided assistance pursuant to this part. In the event of 
any such acquisition, the Secretary may, notwithstanding any 
other provision of law relating to the acquisition, handling, or 
disposal of real property by the United States, complete, 
administer, remodel and convert, dispose of, lease, and otherwise 
deal with, such property. Notwithstanding any other provision of 
law, the Secretary shall also have power to pursue to final col- 
lection by way of compromise or otherwise all claims acquired by 
him in connection with any security, subrogation, or other rights 
obtained by him in administering this part. 

TECHNICAL AND CONFORMING PROVISIONS 

Sec. 727. (a) No bonds, debentures, notes, or other obligations 
shall be guaranteed under title IV of the Housing and Urban Develop- 
ment Act of 1968 after the effective date ^ of this part except pursuant 
to an offer or commitment to guarantee, or a project approval, made 
before that date : Provided^ That a new community developer whose 
new community development project has, as of the effective date of this 
part, been approved by the Secretary under title IV shall be eligible 
with respect to obligations thereafter issued by him for guarantee 
assistance as authorized either by title IV or by this part, and such 
guarantee assistance may be given without a further determination by 
the Secretary under sections 712 and 716(a) of this part. If the Secre- 
tary finds that an applicant for title TV assistance has submitted com- 
plete financial and internal development plans and related materials 
pursuant to section 404 of such title IV, or major elements of such 
plans or materials, the Secretary may accept such plans and materials 
or major elements, respectively, as fully or partially satisfying the 
requirement under this part for the submission of a new community 
development program. All receipts, funds, or other assets and all liabil- 
ities of the revolving fund established pursuant to section 407 of the 
Housing and Urban Development Act of 1968 (including liabilities 
arising under guarantees made pursuant to such title IV and this 
section) shall become and be assets and liabilities of the revolving fund 
established pursuant to this part, as if such assets and liabilities had 
been received or incurred pursuant to this part, and shall be paid 
over, held, and accounted for accordingly. 

♦ ♦***** 

(f) All laborers and mechanics employed by contractors or sub- 
contractors in land development assisted under this part shall be 
paid wages at rates not less than those prevailing on similar construc- 
tion in the locality as determined by the Secretary of Labor in ac- 
cordance with the Davis-Bacon Act^ as amended (40 U.S.C. 276a— 
276a-5). No assistance shall be extended under this part for any land 

1 December 31, 1970. 

876 



NEW COMMUNITIES §728 

development without first obtaining adequate assurance that these 
labor standards will be maintained upon the construction work in- 
volved in such program. The Secretary of Labor shall have, with 
respect to the labor standards specified in this section, the authority 
and functions set forth in Reorganization Plan Numbered 14 of 1950 
(64 Stat. 1267), and section 2 of the Act of June 13, 1934 (40 U.b.C. 

(g) With respect to any obligation issued by or on behalt of any 
State land development agency for which the issuer has elected to 
receive the benefits of the guarantees provided under this part, the 
interest paid on such obligation and received by the purchaser thereof 
(or his successor in interest) shall be included in gross income for the 
purposes of chapter 1 of the Internal Revenue Code of 1954. 

JOINT FUNDING 

Sec. 728. Funds made available under any Federal assistance pro- 
gram for projects or activities approved as part of, or pursuant to, a 
new community development program may be used jointly with funds 
made available for such projects or activities under any other Federal 
assistance program, subject to regulations prescribed by the President. 
Such regulations may include provisions for common technical or 
administrative requirements where varying or conflicting provisions 
of law would otherwise apply, for establishing joint management 
funds and common non-Federal shares, and for special agreements, 
or delegations of authority, among different Federal agencies in con- 
nection with the supervision or administration of assistance. Such 
regulations shall in any case include appropriate criteria and pro- 
cedures to assure that any special authorities conferred, which are not 
otherwise provided for by law, shall be employed only as necessary to 
promote effective and efficient administration and in a manner con- 
sistent with the protection of the Federal interest and program pur- 
poses or statutory requirements of a substantive nature. For purposes 
of this section, the term "Federal assistance program" has the same 
meaning as under the Intergovernmental Cooperation Act of 1968. 

NEW COMMUNITY DEVELOPMENT CORPORATION ^ 

Sec. 729 (a) There is hereby created within the Department of 
Housing and Urban Development a body corporate to be known as 
the Community Development Corporation which shall carry out its 
functions subject to the direction and supervision of the Secretary. 

(b) The Corporation shall have a Board of Directors (hereinafter 
referred to as the "Board") which shall consist of seven members ^ 
as follows : 

(1) The Secretary, who shall be Chairman of the Board; 

(2) one person, to be appointed by the President by and with 
the advice and consent of the Senate, who shall serve at the pleas- 
ure of the President, shall be the General Manager of the Cor- 

no*?oo- a2^J,^''PL^^ Housing and Commnnity Develonment Act of 1974. Public La\r 
»3--383. 88 Stat 633, approved August 22, 1974, Inserted "NEW" before "COMMUNITY" 
In this heading. 

oo*l5^: ^il^o^**^ °^ Housing and Commnnity Development Act of 1974. Public Law 93-383, 
»» tstat. 633, approved August 22, 1974, substituted "seven members" for "five members". 

877 



§735 NEW COMMUNITIES 

poration, serving as its chief executive officer under the Board's 
general direction, and shall receive compensation at the ^ate pro- 
vided for positions at level IV of the Executive Schedule (5 
U.S.C. 5315) ; and 

(3) five persons/ to be appointed by the Secretary, who shall 

serve at his pleasure, but not more than one such person shall be 

selected from among officers or employees of the Department of 

Housing and Urban Development. 

Members of the Board who are regular, full-time officers or employees 

of the Federal Government shall receive no additional compensation 

for their services as Board members. Other members shall receive for 

their services as members, when engaged in the performance of their 

duties, the per diem equivalent to the rate for level IV of the Federal 

Executive Salary Schedule under section 5315 of title 5 of the United 

States Code. Each member of the Board shall be allowed travel 

expenses, including per diem in lieu of subsistence, as authorized by 

section 5703 of such title for persons in the Government service 

employed intermittently. 

(c) The functions of the Secretary with respect to guarantees and 
loans in aid of new community development under this part shall be 
administered through the Community Development Corporation, and 
the Corporation shall perform such additional functions, powers, and 
duties as the Secretary may prescribe from time to time. 

Part C — Development of Rational Urban Growth Patterns 

state and regional planning 
Sec. 735.2 

Part D — Development of Inner City Areas 

PURPOSE 

Sec. 740. It is the purpose of this part to provide our cities, which 
urgently' need to augment their inventories of housing (particularly 
housing for low and moderate income families) and to find sites for 
essential public facilities and additional sources of employment, but 
have virtually no vacant land upon which to build, with a program 
which will make possible the more rational use of urban land and 
space that is currently occupied by industrial or commercial uses 
which though not physically blighted are functionally obsolete or 
uneconomic, or of land and space that is not usable in its present state 
because of natural hazards or inadequate development, so that in 
appropriate cases major rebuilding projects (including new communi- 
ties in town) may be undertaken without major residential clearance 
activities and with minimal displacement. 

amendments to title i of the housing act of 1949 

Sec. 741.3 

Approved December 31, 1970. 



^J^^^- S03<b)(2) of Housincr and Community Development Act of 1974. Public Law 
93-383. 88 Stat. 633, approved August 22, 1974, substituted "five persons" for "three 
persons." 

2 See sec. 701 (j), Housing Act of 1954. 

3 See sees. 103(a) (1), 110(c) (1), and 110(c) (7), Housing Act of 1949. 

878 



NEW COMMUNITIES §401 

HOUSING AND URBAN DEVELOPMENT ACT OF 1968 

[Public Law %-448, 82 Stat. 476, 513; 42 U.S.C. 3901 et seq.] 

TITLE IV— GUARANTEES FOR FINANCING NEW 
COMMUNITY LAND DEVELOPMENT 

CITATION 

Sec. 401. This title may be referred to as the "New Communities 
Act of 1968". 

PURPOSE 

Sec. 402. It is the purpose of this title, by facilitating the enlistment 
of private capital in new community development, to encourage the 
development of new communities that — 

(1) contribute to the general betterment of living conditions 
through the improved quality of community development made 
possible by a consistent design for the provision of homes, com- 
mercial and industrial facilities, public and community facilities, 
and open spaces ; 

(2) make substantial contributions to the sound and economic 
growth of the areas in which they are located ; 

(3) provide needed additions to the general housing supply; 

(4) provide opportunities for innovation in housing and com- 
munity development technology and in land use plannmg; 

(5) enlarge housing and employment opportunities by increas- 
ing the range of housing choice and providing new investment 
opportunities for industry and commerce ; 

(6) encourage the maintenance and growth of a diversified 
local homebuilding industry ; and 

'(7) include, to the greatest extent feasible, the employment of 
new and improved technology, techniques, materials, and meth- 
ods in housing construction, rehabilitation, and maintenance 
under programs administered by the Department of Housing and 
Urban Development with a view to reducing the cost of such con- 
struction, rehabilitation, and maintenance, and stimulating the 
increased and sustained production of housing under such 
programs. 

guarantee authority 

Sec. 403. To carry out the purposes of this title the Secretary is 
authorized to guarantee, and enter into commitments to guarantee, the 
bonds, debentures, notes, and other obligations issued by new com- 
munity developers to help finarce new community development proj- 
ects. The Secretary may make such guarantees and enter into such 
commitments, subject to the limitations contained in sections 404 and 
405, upon such terms and conditions as he may prescribe, taking into 
accoi(nt (1) the large initial capital investment required to finance 
soumd new communities, (2) the extended period before initial returns 
on this type of investment can be expected, (3) the irregular pattern 
of cash returns characteristic of such investment, and (4) the financial 
and security interests of the United States in connection with guaran- 
tees made under this title. 



879 



§404 NEW COMMUNITIES 

ELIGIBLE NEW COMMUNITY DEVELOPMENT 

Sec. 404. No guarantee or commitment to guarantee may be made 
under this title unless the Secretary has determined that — 

(1) the proposed new community (A) will be economically 
feasible in terms of economic base or potential for growth, and 
(B) will contribute to the orderly growth and development of the 
area of which it is a part ; 

(2) there is a practicable plan (including appropriate time 
schedules) for financing the land acquisition and land develop- 
ment costs of the proposed new community and for improving and 
marketing the land which, giving due consideration to the public 
purposes of this title and the special problems involved in financ- 
mg new communities, represents an acceptable financial risk to 
the United States ; 

(3) there is a sound internal development plan for the new com- 
munity which (A) has received all governmental approvals 
required by State or local law or by the Secretary; and (B) is 
acceptable to the Secretary as providing reasonable assurance that 
the development will contribute to good living conditions in the 
area being developed, will be characterized by sound land use pat- 
terns, will include a proper balance of housing for families of low 
and moderate income, and will include or be served by such shop- 
ping, school, recreational, transportation, and other facilities as 
the Secretary deems satisfactory : and 

(4) the internal development plan is consistent with a compre- 
hensive plan which covers, or with comprehensive planning being 
carried on for, the area in which the land is situated, and which 
meets criteria established by the Secretary for such comprehensive 
plans or planning. 

ELIGIBLE OBLIGATIONS 

Sec. 405. (a) Any bond, debenture, note or other obligation guar- 
anteed under this title shall — 

(1) be issued by a new community developer, other than a pub- 
lic body, approved by the Secretary on the basis of financial, 
technical and administrative ability which demonstrates his ca- 
pacity to carry out the proposed project; 

(2) be issued to and held by investors approved by, or meeting 
requirements prescribed by, the Secretary, or if an offering to 
the public is contemplated, be uncjerwritten upon terms and con- 
ditions approved by the Secretary; 

(3) be issued to finance a program of land development (in- 
cluding acquisition or use of land) approved by the Secretary: 
Provided^ That the Secretary shall, throu<rh cost certification 
procedures, escrow or trusteeship requirements, or other means, 
insure that all proceeds from the sale of obligations guaranteed 
under this title are expended pursuant to such program ; 

(4) involve a principal obligation in an amount not to exceed 
the lesser of (A) 80 per centum of the Secretary's estimate of 
the value of the property upon completion of the land develop- 
ment or (B) the sum of 75 per centum of the Secretary's estimate 



880 



NEW COMMUNITIES §406 

of the value of the land before development and 90 per centum 
of his estimate of the actual cost of the land development ; 

(5) bear interest at a rate satisfactory to the Secretary, such 
interest to be exclusive of any service charges and fees that may 
be approved by the Secretary; 

(6) contain repayment and maturity provisions satisfactory to 
the Secretary; and 

(7) contain provisions which the Secretary shall prescribe with 
respect to the protection of the security interests of the United 
States (including subrogation provisions), liens and releases of 
liens, payment of taxes, and such other matters as the Secretary 
may, in his discretion, prescribe. 

(b) The outstanding principal obligations guaranteed under this 
title with respect to a single new community development project shall 
at no time exceed $50,000,000. 

FEES AND CHARGES 

Sec. 406. The Secretary is authorized to establish and collect fees 
for guarantees made under this title and may make such charges as 
he considers reasonable for the analysis of development and financing 
plans and for appraisals and inspections related to new community 
development projects. On or before January 1, 1970, the Secretary 
shall make a report to the Congress concerning the fees and other 
charges under this title that he estimates will be adequate to provide 
income sufficient for a self-supporting program. 

GUARANTEE FUND 

Sec. 407. (a) To provide for the payment of any liabilities incurred 
as a result of guarantees made under this title, the Secretary is author- 
ized to establish a revolving fund which shall be comprised of (1) 
receipts from fees and charges; (2) recoveries under security or sub- 
rogation rights or other rights, and any other receipts obtained in 
connection with such guarantees; and (3) such sums, which are hereby 
authorized to be appropriated, as may be required for program op- 
erations and nonadministrative expenses and to make any and all 
payments guaranteed under this title. The ^ Secretary may issue ob- 
ligations to the Secretary of the Treasury in an amount outstanding 
at any one time sufficient to enable the Secretary to carry out his 
functions with respect to the guarantees authorized by this title. The 
obligations issued under this subsection shall have such maturities and 
bear such rate or rate^ of interest as shall be determined by the Sec- 
retary of the Treasury. The Secretary of the Treasury is authorized 
and directed to purchase any obligations of the Secretary issued under 
this subsection, and for such purpose the Secretary of the Treasury is 
authorized to use as a public debt transaction the proceeds from the 
sale of any securities issued under the Second Liberty Bond Act, as 
now or hereafter in force, and the purposes for which securities may 
be issued uyider such Act are extended to include purchase of the 
Secretary's obligations hereunder. 



^Sec. 703. Emereenfy Home Finance Act of 1970. Public Law 91-351, approved July 24. 
1970. 84 Stat. 450, 462, added the remaining language In this subsection (a) beginning 
at this point. 

881 



§408 NEW COMMUNITIES 

(b) The full faith and credit of the United States is pledged to 
the payment of all guarantees made under this title with respect to 
both principal and interest, including (1) interest, as may be provided 
for in the guarantee, accruing between the date of default under a 
guaranteed obligation and the payment in full of the guarantee, and 
(2) principal and interest due under any debentures issued by the 
Secretary toward payment of guarantees made under this title. 

(c) ^ otwithstandmg any other provision of law relating to the 
acquisition, handling, improvement, or disposal of real and other 
property by the United States, the Secretary shall have power, for 
the protection of the interests of the guarantee fund authorized under 
this section, to pay out of such fund all expenses or charges in con- 
nection with the acquisition, handling, improvement, or disposal of 
any property acquired by him under this title ; and notwithstanding 
any other provision of law, the Secretary shall also have power to pur- 
sue to final collection by way of compromise or otherwise all claims 
acquired by him in connection with any security, subrogation, or 
other rights obtained by him in carrying out this title. 

(d) The aggregate of the outstanding principal obligations guar- 
anteed under this title shall at no time exceed $500,000,000.^ 

INCONTESTABILITY 

Sec. 408. Any guarantee made by the Secretary under this title shall 
be conclusive evidence of the eligibility of the obligations for such 
guarantee, and the validity of any guarantee so made shall be incon- 
testable in the hands of a ^ holder of the guaranteed obligation.^ 

ENCOURAGEMENT OF SMALL BUILDERS 

Sec. 409. The Secretary shall adopt such requirements as he deems 
necessary to assure that new community construction assisted under 
this title will encourage the maintenance of a diversified local home- 
building industry and broad participation by builders, particularly 
small builders. 

LABOR 

Sec. 410. All laborers and mechanics employed by contractors or 
subcontractors in land development assisted under section 403 shall be 
paid wages at rates not less than those prevailing on similar construc- 
tion in the locality as determined by the Secretary of Labor in accord- 
ance with the Davis-Bacon Act, as amended (40 U.S.C. 276a — 
276a-5). No assistance shall be extended under section 403 for land 
development without first obtaining adequate assurance that these 
labor standards will be maintained upon the construction work 
involved in such development. The Secretary of Labor shall have, 
with respect to the labor standards specified in this section, the author- 
ity and functions set forth in Reorganization Plan Numbered 14 of 
1950 (64 Stat. 1267), and section 2 of the Act of June 13, 1934 (40 
U.S.C. 276c). 

1 Sec. 303(a), Housing and Urban Development Act of 1970, Public Law 91^609, approved 
December 31, 1970, 84 Stat. 1770, 1780, substituted "$500,000,000" for "$250,000,000". 

« Sec. 303(c), Housing and Urban Development Act of 1970, Public Law 91-609, approved 
December 31, 1970. 84 Stat. 1770, 1780. deleted at this point the word -'qualified" and also 
deleted the remainder of this sentence which read "except for fraud or material mis- 
representation on the part of such holder.". 

882 



NEW COMMUNITIES §411 

REAL PROPERTY TAXATION 

Sec. 411. Nothing in this title shall be construed to exempt any real 
property that may be acquired and held by the Secretary as a result 
of the exercise of lien or subrogation rights from real property taxa- 
tion to the same extent, according to its value, as other real property 
is taxed. 

SUPPLEMENTARY GRANTS 

Sec. 412. (a) The Secretary is authorized to make supplementary 
grants to State and local public bodies and agencies carrying out new 
community assistance projects, as defined in section 415(c), if the 
Secretary determines that such grants are necessary or desirable for 
carrying out a new community development project approved for 
assistance under section 403, and that a substantial number of housing 
units for low and moderate income persons is to be made available 
through such development project. 

(b) In no case shall any grant under this section exceed 20 per 
centum of the cost of the new community assistance project for which 
the grant is made ; and in no case shall the total Federal contributions 
to the cost of such project be more than 80 per centum. 

(c) In carrying out his authority under this section the Secretary 
shall consult Avith the Secretary of Agriculture with respect to new 
community assistance projects assisted by that Department, and he 
shall, for the purpose of subsection (b), accept that Department's 
certifications as to the cost of such projects. 

(d) There are authorized to be appropriated for grants under this 
section not to exceed $5,000,000 for the fiscal year ending June 30, 

1969, and not to exceed $25,000,000 for the fiscal year ending June 30, 

1970. Any amounts so appropriated shall remain available until ex- 
pended, and any amounts authorized for any fiscal year under this 
subsection but not appropriated may be appropriated for any succeed- 
ing fiscal year commencing prior to July 1, 1974.^ 

GENERAL PROVISIONS AND RULES AND REGULATIONS 

Sec. 413. In the performance of, and with respect to, the functions, 
powers, and duties vested in him by this title, the Secretary shall 
(in addition to any authority otherwise vested in him) have the 
functions, powers, and duties (including the authority to issue rules 
and regulations) set forth in section 402, except subsections (c)(2), 
^d), and (f), of the Housino: Act of 1950: Provided, That subsection 
(a)(1) of section 402 shall not apply with respect to functions, 
powers, and duties under section 412 of this title. 

AUDIT BY GENERAL ACCOUNTING OFFICE 

Sec. 414. Insofar as they relate to any grants or guarantees made 
pursuant to this title, the financial transactions of recipients of Fed- 
eral grants or of developers whose obligations are guaranteed by the 
United States pursuant to this title may be audited by the General 



1 Sec. 304. Housing and Urban Development Act of 1969, Public Law 91-152, approved 
December 24. 19G9. 83 Stat. 379. 391. substituted "July 1. 1971" for "July 1. 1970" and 
sec. 303(b), Housing and Urban Development Act of 1970, Public Law 91-609, approved 
December 31. 1970, 84 Stat 1770, 1780, substituted "July 1, 1974" for "July 1, 1971". 

883 



5 415 NEW COMMUNITIES 

Accounting Office under such rules and regulations as may be 
prescribed by the Comptroller General of the United States. The 
representatives of the General Accounting Office shall have access to 
all books, accoimts, records, reports, files, and all other papers, things, 
or property belonging to or in use by such developers or recipients of 
grants pertaining to such financial transactions and necessary to 
facilitate the audit. 

DEFINITIONS 

Sec. 415. As used in this title — 

(a) The term "land development" means the process of grading 
land, making, installing, or constructing water lines and water supply 
installations, sewer lines and sewage disposal installations, steam, ^as, 
and electric lines and installations, roads, streets, curbSj gutters, side- 
walks, storm drainage facilities, and other installations or work, 
whether on or off the site, which the Secretary deems necessary or 
desirable to prepare land for residential, commercial, industrial, or 
other uses, or to provide facilities for public or common use. The term 
"land development" shall not include any building unless it is (1) a 
building which is needed in connection with a water supply or sewage 
disposal installation or a steam, gas, or electric line or installation, or 
(2) a building, other than a school, which is to be owned and main- 
tained jointly by the residents of the new community or is to be trans- 
ferred to public ownership, but not prior to its completion. 

(b) The term "actual costs" means the costs (exclusive of rebates 
or discounts) incurred by a new community developer in carrying out 
the land development assisted under this title. These costs may include 
amounts paid for labor, materials, construction contracts, land plan- 
ning, engineers' and architects' fees, surveys, taxes, and interest during 
development, organizational and legal expenses, such allocation of gen- 
eral overhead expenses as are acceptable to the Secretary, and other 
items of expense incidental to development which may be approved 
by the Secretary. If the Secretary determines that there is an identity . 
of interest between the new community developer and a contractor, 
there may be included as a part of actual costs an allowance for the 
contractor's profit in an amount deemed reasonable by the Secretary. 

(c) The term "new community assistance projects'' means projects 
assisted by grants made under section 702 of the Housing and Urban 
Development Act of 1965, section 306(a) (2) of the Consolidated Farm- 
ers' Home Administration Act, or title VII of the Housing Act of 
1961. ^ 

♦♦♦♦♦♦♦ 
Approved August 1, 1968. 



884 



§101 

INTERGOVERNMENTAL COOPERATION ACT OF 

1968 

[Public Law 90-577, 82 Stat. 1098; 42 U.S.C. 4201] 

AN ACT To achieve the fullest cooperation and coordination of activities among 
the levels of government in order to improve the operation of our federal sys- 
tem in an increasingly complex society, to improve the administration of 
grants-in-aid to the States, to permit provision of reimbursable technical 
services to State and local government, to establish coordinated intergovern- 
mental policy and administration of development assistance programs, to 
provide for the acquisition, use, and disposition of land within urban areas 
by Federal agencies in conformity with local government programs, to provide 
for periodic congressional review of Federal grants-in-aid, and for other 
purposes 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ That this Act be 
cited as the "Intergovernmental Cooperation Act of 1968". 

TITLE I— DEFINITIONS 

When used in this Act — 

FEDERAL AGEXCT 

Sec. 101. The term "Federal a^rency" means any department, agency, 
or instrumentality in the executive branch of the Government and 
any wholly owned Government corporation. 

STATE 

Sec. 102. The term "State" means any of the several States of the 
United States, the District of Columbia, Puerto Rico, any territory 
or possession of the United States, or any agency or instrumentality of 
a State, but does not include the governments of the political subdivi- 
sions of the State. 

POLITICAL SUBDIVISIOX OR LOCAL GOVERNMENT 

Sec. 103. The term "political subdivision" or "local government" 
means a local unit of government, including specifically a county, 
municipality, city, town, township, or a school or other special district 
created by or pursuant to State law. 

UNIT OF GENERAL LOCAL GOVERNMENT 

Sec. 104. "Unit of general local government" means any city, county, 
town, parish, village, or other general purpose political subdivision of 
a State. 



885 



§105 INTERGOVERNMENTAL COOPERATION 

SPECIAL-PURPOSE UNIT OF LOCAL GOVERNMENT 

Sec. 105. "Special-purpose unit of local government" means any 
special district, public-purpose corporation, or other strictly limited- 
purpose political subdivision of a State, but shall not include a school 
district. 

GRANT OR GRANT-IN-AID 

Sec. 106. The term "grant" or "grant-in-aid" means money, or 
property provided in lieu of money, paid or furnished by the United 
States under a fixed annual or aggregate authorization — 

(A) to a State; or 

(B) to a political subdivision of a State ; or 

(C) to a beneficiary under a plan or program, administered 
by a State or a political subdivision of a State, which is subject 
to approval by a Federal agency ; 

if such authorization either (i) requires the States or political sub- 
divisions to expend non-Federal funds as a condition for the receipt of 
money or property from the United States; or (ii) specifies directly, 
or establishes by means of a formula, the amounts which may be paid 
or furnished to States or political subdivisions, or the amounts to be 
allotted for use in each of the States by the States, political subdivi- 
sions, or other beneficiaries. The term also includes money, or property 
provided in lieu of money, paid and furnished by the United States 
to any community action agency under the Economic Opportunity 
Act of 1964, as amended. The term does not include (1) shared reve- 
nues; (2) payments of taxes; (3) payments in lieu of taxes; (4) 
loans or repayable advances; (5) surplus property or surplus agri- 
cultural commodities furnished as such; (6) payments under research 
and development contracts or grants which are awarded directly and 
on similar terms to all qualifying organizations, whether public or 
private; or (7) payments to States or political subdivisions as full 
reimbursement for the costs incurred in paying benefits or furnishing 
services to persons entitled thereto under Federal laws. 

federal assistance, federal financial assistance, federal assist- 
ance PROGRAMS, OR FEDERALLY ASSISTED PROGRAMS 

Sec. 107. The term "Federal assistance", "Federal financial assist- 
ance", "Federal assistance programs", or "federally assisted pro- 
grams", means programs that provide assistance through grant or 
contractual arrangements, and includes technical assistance programs 
or programs providing assistance in the form of loans, loan guaran- 
tees, or insurance. The term does not include any annual payment by 
the United States to the District of Columbia authorized by article 
VI of the District of Columbia Revenue Act of 1947 (D.C. Code sees. 
47-2501a and 47-2501b) . 

SPECIALIZED OR TECHNICAL SERVICES 

Sec. 108. "Specialized or technical services" means statistical and 
other studies and compilations, development projects, technical tests 



886 



INTERGOVERNMENTAL COOPERATION § 109 and § 202 

and evaluations, technical information, training activities, surveys, 
reports, documents, and any other similar service functions which any 
department or agency of the executive branch of the Federal Govern- 
ment is especially equipped and authorized by law to perform. 

COMPREHENSIVE PLANNINQ 

Sec. 109. "Comprehensive planning" includes the following, to the 
extent directly related to area needs or needs of a unit of general local 
government: (A) preparation, as a guide for governmental policies 
and action, of general plans with respect to (i) the pattern and inten- 
sity of land use, (ii) the provision of public facilities (including 
transportation facilities) and other government services, and (iii) the 
effective development and utilization of human and natural resources; 
(B) long-range physical and fiscal plans for such action; (C) pro- 
graming of capital improvements and other major expenditures, based 
on a determination of relative urgency, together with definitive 
financing plans for such expenditures in the earlier years of the pro- 
gram; (D) coordination of all related plans and activities of the State 
and local governments and agencies concerned; and (E) preparation 
of regulatory and administrative measures in support of the foregoing. 

HEAD OP AGENCY 

Sec. 110. The term "head of a Federal agency" or "head of a State 
agency" includes a duly designated delegate of such agency head. 

TITLE II— IMPROVED ADMINISTRATION OF GRANTS-IN- 
AID TO THE STATES 

rULL INFORMATION ON FUNDS RECEIVED 

Sec. 201. Anjr department or agency of the United States Govern- 
ment which administers a program of grants-in-aid to any of the State 
governments of tlie United States or to their political subdivisions 
shall, upon request, notify in writing the Governor, the State legisla- 
ture, or other official designated by either, of the purpose and amounts 
of actual grants-in-aid to the State or to its political subdivisions. In 
each instance, a copy of requested information shall be furnished the 
State legislature or the Governor depending upon the original request 
for such data. 

DEPOSIT OF GRANTS-IN-AID 

Sec. 202. No grant-in-aid to a State shall be required by Federal law 
or administrative regulation to be deposited in a separate bank account 
apart from other funds administered by the State. All Federal grant- 
in-aid funds made available to the States shall be properly accounted 
for as Federal funds in the accounts of the State. In each case the State 
agency concerned shall render regular authenticated reports to the 
.appropriate Federal agency covering the status and the application of 
the funds, the liabilities and obligations on hand, and such other facts 
as may be required by said Federal agency. The head of the Federal 
agency and the Comptroller General of the United Stat.es or any of 



45-705 0-79 



887 



§ 203 and § 301 INTERGOVERNMENTAL COOPERATION 

their duly authorized representatives shall have access for the purpose 
of audit and examination to any books, documents, papers, and records 
that are pertinent to the grant-in-aid received by the States. 

SCI-IEDULING OF FEDERAL TRANSFERS TO THE STATES 

Sec. 203. Heads of Federal departments and agencies responsible 
for administering grant-in-aid programs shall schedule the transfer of 
grant-in-aid funds consistent with program purposes and applicable 
Treasury regulations, so as to minimize the time elapsing between the 
transfer of such funds from the United States Treasury and the dis- 
bursement thereof by a State, whether such disbursement occurs prior 
to or subsequent to such transfer of funds. States shall not be held 
accountable for interest earned on grant-in-aid funds, pending their 
disbursement for program purposes. 

ELIGIBLE STATE AGENCY 

Sec. 204. Notwithstanding any other Federal law which provides 
that a single State agency or multimember board or commission must 
be established or designated to administer or supervise the administra- 
tion of any grant-in-aid program, the head of any Federal department 
or agency administering such program may, upon request of the Gov- 
ernor or other appropriate executive or legislative authority of the 
State responsible for determining or revising the organizational struc- 
ture of State government, waive the single State agency or multimem- 
ber board or commission provision upon adequate showing that such 
provision prevents the establishment of the most effective and efficient 
organizational arrangements within the State government and ap- 
prove other State administrative structure or arrangements: Pro- 
mded^ That th^ head of the Federal department or agency determines 
that the objectives of the Federal statute authorizing the grant-in-aid 
program will not be endangered by the use of such other State struc- 
ture or arrangements. 

TITLE III— PEEMITTING FEDERAL DEPARTMENTS AND 
AGENCIES TO PROVIDE SPECIAL OR TECHNICAL 
SERVICES TO STATE AND LOCAL UNITS OF GOVERN- 
MENT 

STATEMENT OF PURPOSE 

Sec. 301. It is the purpose of this title to encourage intergovern- 
mental cooperation in the conduct of specialized or technical services 
and provision of facilities essential to the administration of State or 
local governmental activities, many of which are nationwide in scope 
and financed in part by Federal funds ; to enable State or local govern- 
ments to avoid unnecessary duplication of special service functions; 
and to authorize all departments and agencies of the executive branch 
of the Federal Government which do not have such authority to pro- 
vide reimbursable specialized or technical services to State and local 
governments. 



888 



INTERGOVERNMENTAL COOPERATION § 302 and § 401 
AUTHORITY TO PROVIDE SERVICE 

Sec. 302. The head of any Federal department or agency is author- 
ized within his discretion, upon written request from a State or pohti- 
cal subdivision thereof, to provide specialized or technical services, 
upon pa3^ment, to the department or agency by the unit of government 
making the request, of salaries and all other identifiable direct or 
indirect costs of performing such services : Provided, however, That 
such services shall include only those which the Director of the 
Bureau of the Budget through rules and regulations determines Fed- 
eral departments and agencies have special competence to provide. 
Such rules and regulations shall be consistent with and in furtherance 
of tlie Government's policy of relying on the private enterprise system 
to provide those services which are reasonably and expeditiously 
available through ordinary business channels. 

reimbursement or appropriation 

Sec. 303. All moneys received by any department or agency of the 
executive branch of the Federal Government, or any bureau or other 
administrative division thereof, in payment for furnishing specialized 
or technical services as authorized under section 302 shall be deposited 
to the credit of the principal appropriation from which the cost of 
providing such services has been paid or is to be charged. 

REPORTS TO congress 

Sec. 304. The Secretary of any department or the administrative 
head of any agency of the executive branch of the Federal Govern- 
ment shall furnish annually to the respective committees on Govern- 
ment Operations of the Senate and House of Representatives a sum- 
mary report on the scope of the services provided under the adminis- 
tration of this title. 

reservation of existing authority 

Sec. 305. This title is in addition to and does not supersede any 
existing authority now possessed by anj^ Federal department or agency 
with respect to furnishing services, whether on a reimbursable or non- 
reimbursable basis, to State and local units of government. 

TITLE IV— COORDINATED INTERGO^HERNTMENTAL POL- 
ICY AND ADMINISTRATION OF DEVELOPMENT AS- 
SISTANCE PROGRAMS 

declaration of development assistance policy 

Sec. 401. (a) The economic and social development of the Nation 
and the achievement of satisfactory levels of living depend upon the 
sound and orderly development of all areas, both urban and rural. 
Moreover, in a time of rapid urbanization, the sound and orderly 
development of urban communities depends to a large degree upon 
the social and economic health and the sound development of smaller 
communities and rural areas. The President ^ shall, therefore, establish 



889 



§401 mTERGOVERNMENTAL COOPERATION 

rules and regulations governing the formulation, evaluation, and re- 
view of Federal programs and projects having a significant impact 
on area and community development, including programs providing 
Federal assistance to the States and localities, to the end that they 
shall most effectively serve these basic objectives. Such rules and regu- 
lations shall provide for full consideration of the concurrent achieve- 
ment of the following specific objectives and, to the extent authorized 
by law, reasoned choices shall be made between such objectives when 
they conflict : 

(1) Appropriate land uses for housing, commercial, industrial, 
governmental, institutional, and other purposes ; 

(2) Wise development and conservation of natural resources, 
including land, water, minerals, wildlife, and others ; 

(3) Balanced transportation systems, including highway, air, 
water, pedestrian, mass transit, and other modes for the movement 
of people and goods ; 

(4) Adequate outdoor recreation and open space; 

(5) Protection of areas of unique natural beauty, historical and 
scientific interest ; 

(6) Properly planned community facilities, including utilities 
for the supply of power, water, and communications, for the safe 
disposal of wastes, and for other purposes ; and 

(7) Concern for high standards of design. 

(b) All viewpoints — ^national, regional. State, and local — shall, to 
the extent possible, be fully considered and taken into account in 
planning Federal or federally assisted development programs and 
projects. State and local government objectives, together with the 
objectives of regional organizations shall be considered and evaluated 
within a framework of national public objectives, as expressed in 
Federal law, and available projections of future national conditions 
and needs of regions, States, and localities shall be considered in plan 
formulation, evaluation, and review. 

(c) To the maximum extent possible, consistent with national objec- 
tives, all Federal aid for development purposes shall be consistent 
with and further the objectives of State, regional, and local compre- 
hensive planning. Consideration shall be given to all developmental 
aspects of our total national community, including but not limited to 
housing, transportation, economic development, natural and human 
resources development, community facilities, and the general improve- 
ment of living environments. 

(d) Each Federal department and agency administering a develop- 
ment assistance program shall, to the maximum extent practicable, 
consult with and seek advice from all other significantly affected 
Federal departments and agencies in an effort to assure fully coordi- 
nated programs. 

(e) Insofar as possible, systematic planning required by individual 
Federal programs (such as highway construction, urban renewal, and 
open space) shall be coordinated with and, to the extent authorized by 

1 In a memorandum to the Director of the Bureau of the Budget, dated Nov. 8, 
1968, the President delegated this authority to the Director, and stated he expected the 
Bureau "to generally coordinate the actions of the departments and agencies In exercising 
the new authorizations provided by the Intergovernmental Cooperation Act with the 
objective of consistent and uniform action by the Federal Government" (33 Fed. Ref. 
16487) 



890 



INTERGOVERNMENTAL COOPERATION § 402 and § 501 

law, made part of comprehensive local and areawide development 
planning. 

FAVORING T7NITS OF GENERAL LOCAL GOVERNMENT 

Sec. 402. Where Federal law provides that both special-purpose 
units of local government and units of general local government are 
eligible to receive loans or grants-in-aid, heads of Federal depart- 
ments and agencies shall, in the absence of substantial reasons to the 
contrary, make such loans or grants-in-aid to units of general local 
government rather than to special-purpose units of local government. 

RULES AND REGULATIONS 

Sec. 403. The Bureau of the Budget or such other agency as may 
be designated by the President is hereby authorized to prescribe such 
rules and regulations as are deemed appropriate for the effective 
administration of this title. 

TITLE V— ACQUISITION, USE, AND DISPOSITION OF 
LAND WITHIN UEB AN AEEAS BY FEDERAL AGENCIES 
IN CONFORIMITY WITH LAND UTILIZATION PRO- 
GRAMS OF AFFECTED LOCAL GOVERNIMENT 

AMENDMENT OF FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT 

Sec. 501. The Federal Property and Administrative Services Act 
of 1949, as amended (40 U.S.C. 471 et seq.), is amended by adding 
at the end thereof a new title as follows : 

"TITLE VIII— URBAN LAND UTILIZATION 



"Sec. 801. This title may be cited as the 'Federal Urban Land-Use 
Act'. 



"Sec. 802. It is the purpose of this title to promote more harmonious 
intergovernmental relations and to encourage sound planning, zoning, 
and land-use practices by prescribing uniform policies and procedures 
whereby the Administrator shall acquire, use, and dispose of land in 
urban areas in order that urban land transactions entered into for the 
General Ser\4ces Administration or on behalf of other Federal agen- 
cies shall, to the greatest extent practicable, be consistent with zoning 
and land-use practices and shall be made to the greatest extent 
practicable in accordance with planning and development objectives 
of the local governments and local planning agencies concerned. 

"disposal OF URBAN LANDS 

"Sec. 803. (a) Whenever the Administrator contemplates the dis- 
posal for or on behalf of any Federal agency of any real property 
situated within an urban area, he shall, prior to offering such land for 



891 



§501 INTERGOVERNMENTAL COOPERATION 

sale, give reasonable notice to the head of the governing body of the 
unit of general local government having jurisdiction over zoning and 
land-use regulation in the geographical area within which the land or 
lands are located in order to afford the government the opportmiity of 
zoning for the use of such land in accordance with local comprehensive 
planning. 

"(b) The Administrator, to the greatest practicable extent, shall 
furnish to all prospective purchasers of such real property, full and 
complete information concerning — 

" (1) current zoning regulations and prospective zoning require- 
ments and objectives for such property when it is unzoned ; and 
"(2) current availability to such property of streets, sidewalks, 
sewers, water, street lights, and other service facilities and pro- 
spective availability of such services if such property is included 
in comprehensive planning. 

"ACQUISmON OR CHANGE OF USE OP REAL PROPERTY 

"Sec. 804. (a) To the extent practicable, prior to a commitment to 
acquire any real property situated in an urban area, the Administrator 
shall notify the unit of general local government exercising zoning and 
land-use jurisdiction over the land proposed to be purchased of his 
intent to acquire such land and the proposed use of the property. In 
the event that the Administrator determines that such advance notice 
would have an adverse impact on the proposed purchase, he shall, upon 
<;onclusion of the acquisition, immediately notify such local govern- 
ment of the acquisition and the proposed use of the property. 

" (b) In the acquisition or change of use of any real property situated 
in an urban area as a site for public building, the Administrator shall, 
to the extent he determines practicable — 

"(1) consider all objections made to any such acquisition or 
change of use by such unit of government upon the ground that 
the proposed acquisition or change of use conflicts or would con- 
flict with the zoning regulations or planning objectives of such 
unit; and 

"(2) comply with and conform to such regulations of the unit 

of general local government having jurisdiction with respect to 

the area within which such property is situated and the planning 

and development objectives of such local government. 

^^Sec. 805. The procedures prescribed in sections 803 and 804 may be 

waived during any period of national emergency proclaimed by the 

President. 



"Sec. 806. As used in this title— 

"(a) *Unit of general local government' means any city, county, 
town, parish, village, or other general-purpose political subdivision of 
a State. 

" (b) 'Urban area' means — 

"(1) any geographical area within the jurisdiction of any in- 
corporated city, town, borough, village, or other unit of general 
local government, except county or parish, having a population of 
ten thousand or more inhabitants ; 



892 



INTERGOVERNMENTAL COOPERATION §601 

"(2) that portion of the geographical area within the jurisdic- 
tion of any county, town, township, or similar governmental entity 
which contains no incorporated unit of general local government 
but has a population density equal to or exceeding one thousand 
five hundred inhabitants per square mile ; and 

"(3) that portion of any geographical area having a population 
density equal to or exceeding one thousand five hundred inhabi- 
tants per square mile and situated adjacent to the boundary of 
any incorporated unit of general local government which has a 
population of ten thousand or more inhabitants. 
"(c) ^Comprehensive planning' includes the following, to the extent 
directly related to the needs of a unit of general local government: 

"(1) Preparation, as a guide for governmental policies and ac- 
tion, of general plans with respect to (A) the pattern and inten- 
sity of land use, (B) the provision of public facilities (including 
transportation facilities) and other governmental services, and 
(C) the effective development and utilization of human and natu- 
ral resources ; 
"(2^ Long-range physical and fiscal plans for such action ; 
"(3) Programing of capital improvements and other major 
expenditures, based on a determination of relative urgency, to- 
gether with definitive financing plans for such expenditures in 
the earlier years of the program : 

"(4) Coordination of all related plans and activities of the 
State and local governments and agencies concerned ; and 

"(5) Preparation of regulatory and administrative measures in 
support of the foregoing." 

TITLE VI— REVIEW OF FEDERAL GRANT-IN-AID 
PROGRAMS 

CONGRESSIONAL REVIEW OF GRANT-IN-AID PROGRAMS 

Sec. 601. (a) Where any Act of Congress authorizes the making of 
grants-in-aid and no expiration date for such authority has been speci- 
fied by law, then prior to the expiration of each period specified in sub- 
section (b) the Committees of the Senate and the House having legis- 
lative jurisdiction over such grants-in-aid shall, separately or jointly, 
conduct studies of the program under which such grants-in-aid are 
made and advise their respective Houses of the results of their findings 
with special attention to — 

(1) The extent to which the purposes for which the grants-in- 
aid are authorized have been met : 

(2) The extent to which the objectives of such programs can be 
carried on without further financial assistance from the United 
States : 

(3) Whether or not any changes in purpose, direction or ad- 
ministration of the original program, or in procedures and re- 
quirements applicable thereto, shall be made : and 

(4) The extent to which such grant-in-aid programs are ade- 
quate to meet the growing and changing needs which they were 
designed to support. 



893 



§602 INTBRGOVERNMENTAL COOPERATION 

(b) (1) A study of a grant-in-aid program- to which subsection (a) 
applies and which is authorized by an Act of Congress enacted before 
the date of enactment of this Act shall be conducted prior to the ex- 
piration of the fourth calendar year beginning after the date of enact- 
ment of this Act, and thereafter prior to the expiration of the fourth 
calendar year following the year during which a study of such pro- 
gram was last conducted under this paragraph. 

(2) A study of a grant-in-aid program to which subsection (a) 
applies and which is authorized by an Act of Congress enacted after 
the date of enactment of this Act shall be conducted prior to the 
expiration of the fourth calendar year following the year of enactment 
of such Act, and prior to the expiration of each fourth calendar year 
thereafter. 

STUDIES BY COMPTROLLER GENERAL OF FEDERAL GRANT-IN-AID PROGRAMS 

Sec. 602. (a) Upon request of any committee having jurisdiction 
over a grant-in-aid program, the Comptroller General shall make a 
study of such program to determine among other relevant matters, the 
extent to which — 

(1) such program conflicts with or duplicates other grant-in-aid 
programs; and 

(2) more effective, efficient, economical and uniform admin- 
istration of such program can be achieved by changing certain 
requirements and procedures applicable thereto. 

(b) In reviewing grant-in-aid programs the Comptroller General 
shall consider, among other relevant matters, the budgetary, 
accounting, reporting and administrative procedures applicable to 
such programs. Reports on such studies, together with recommenda- 
tions, shall be submitted by the Comptroller General to the Congress. 
Reports on expiring programs should, to the extent practicable, be 
submitted in the year prior to the date set for their expiration. 

STUDIES BY ADVISORY COMMISSION ON INTERGOVERNMENTAL RELATIONS 

Sec. 603. Upon request of any committee having jurisdiction over a 

f'ant-in-aid program, the Advisory Commission on Intergovernmental 
elations (established by Public Law 86-380, as amended) shall con- 
duct studies of the intergovernmental relations aspects of such program 
including (1) the impact of such program, if any, on the structural 
organization of State and local governments and on Federal-State- 
local fiscal relations, and (2) the coordination of Federal administra- 
tion of such program with State and local administration thereof, and 
shall report its findings and recommendations to such committee and 
to the Congress. 

PRESERVATION OP HOUSE AND SENATE COMMTETEE JURISDICTION 

Sec. 604. Nothing in this Act shall be construed to affect the juris- 
diction of committees under the rules of the Senate and the House of 
Representatives. 

Approved October 16, 1968. 



894 



INTERGOVERNMENTAL COOPERATION § 1 

ESTABLISHING AN OFFICE OF INTERGOVERNMENTAL 

RELATIONS 

EXECUTIVE ORDER 11455 

[34 Fed. Reg. 2299] 

By virtue of the authority vested in me by the Constitution and 
the statutes of the United States, and as President of the United States, 
it is ordered as follows : 

Section 1. Establishment of tJie Office, (a) There is hereby estab- 
lished the Office of Intergovernmental Relations (hereinafter referred 
to as "the Office") . The Office shall be under the immediate supervision 
of the Vice President of the United States. 

(b) In addition to his other duties, the Vice President shall act 
as the President's liaison with executive and legislative officials of 
State and local governments; encourage and assist in facilitating 
maximum cooperation between and among the various Federal agen- 
cies and such other governments ; help to make the Federal executive 
branch, especially those sectors thereof having a direct impact on 
intergovernmental relations, more sensitive, receptive and responsive 
to the views of State and local officials; serve as the focal point of 
efforts by Federal departments, agencies, and interagency councils and 
committees to resolve specific difficulties that arise in their relationships 
with such officials ; work closely with and encourage the work of the 
Advisory Commission on Intergovernmental Relations; and inform 
the Council for Urban Affairs on general intergovernmental issues 
of an informational, administrative, or program nature so that the 
Council may more effectively advise and assist the President with 
respect to urban affairs. 

Sec. 2. Functions of tlie Office. The Office shall advise and assist the 
Vice President with respect to (1) intergovernmental relations gen- 
erally, and (2) the responsibilities assigned to the Vice President spe- 
cifically under section 1 (b) . In addition, the Office shall : 

(a) serve as the clearinghouse for the prompt handling and solution 
of Federal-State-local problems brought to the attention of the Presi- 
dent or Vice President by executive and legislative officers of State 
and local governments ; 

(b) identify and report to the Vice President on recurring inter- 
governmental problems of a Federal interdepartmental and inter- 
program nature ; 

(c) explore and report to the Vice President on ways and means 
of strengthening the headquarters and interagency relationships of 
Federal field offices as they relate to intergovernmental activities ; 

(d) maintain continuing liaison with intergovernmental units in 
Federal departments and agencies and with the staff of the Council 
for Urban Affairs, and provide the staff of the Council with infor- 
mation and assistance regarding issues arising in Federal-State-local 
relations; and 

(e) review procedures utilized by Federal executive agencies for 
affording State and local officials an opportunity to confer and com- 
ment on Federal assistance programs and other intergovernmental 
issues, and propose methods of strengthening such procedures. 



895 



§3 INTERGOVERNMENTAL COOPERATION 

Sec. 3. Administrative Arrangements, (a) A person designated by 
the Vice President shall serve as Director of the Office. The Director 
shall perform such duties as the Vice President may from time to 
time direct. 

(b) A person designated by the Vice President shall serve as Deputy 
Director of the Office and assist the Director in performing those 
duties assigned to him. 

(c) All Federal departments, agencies, interagency councils and 
committees having an impact on intergovernmental relations, and all 
Federal Executive Boards, shall extend full cooperation and assistance 
to the Vice President and the Director of the Office in carrying out 
the responsibilities under this order. The Director shall, upon re- 
quest, assist all Federal departments and agencies with problems that 
may arise between them and the executive agencies or elected offi- 
cials of State and local governments. 

(d) The head of each Federal department and agency shall desig- 
nate an appropriate official with broad general experience in his de- 
partment or agency to serve, upon request of the Vice President, as a 
point of contact in carrying out Federal-State-local liaison activities 
under this order. 

Sec. 4. Construction, (a) Nothing in this order shall be construed 
as subjecting any department, establishment, or other instrumentality 
of the executive branch of the Federal Government or the head thereof, 
or any function vested by law in or assigned pursuant to law to any 
such agency or head, to the authority of any other such agency or head 
or as abrogating, modifying, or restricting any such function in any 
manner. 

(b) This order supersedes Executive Order No. 11426 of August 31, 
1968. 

Richard Nixon. 

The White House, Fehruary H^ 



896 



OFFICE OF MANAGEMENT AND BUDGET 

Executive Office of the President, 
Office of Management and Budget, 

Washingtcm, D,C,, July SI, 1972, 
Circular No. A-19, Kevised. 

To the heads of executive departments and establishments. 
Subject : Legislative coordination and clearance. 

1. Purpose. — This Circular outlines procedures for the coordination 
and clearance by the Office of Management and Budget (0MB) of 
agency recommendations on proposed, pending, and enrolled legisla- 
tion. It also includes instructions on the timing and preparation of 
agency legislative programs. 

2. Rescission. — This revision supersedes and rescinds Circular No. 
A-19, Revised, dated June 9, 1964, and Transmittal Memorandum 
No. 1, dated October 18, 1971. 

3. Background. — 0MB performs legislative coordination and clear- 
ance functions to (a) assist the President in developing his position 
on legislation, (b) make known the Administration's position on par- 
ticular legislation for the guidance of the agencies and information 
of Congress, (c) assure appropriate consideration of the views of all 
affected agencies, and (d) assist the President with respect to his 
action on enrolled bills. 

4. Coverage. — All executive branch agencies (as defined in para- 
graph 5b), are subject to the provisions of this Circular. Agencies 
of the legislative and judicial branches are not covered by its 
provisions. 

5. Definitions. — For the purpose of this Circular, the following 
definitions shall apply : 

a. Advice. — Information transmitted to an agency by 0MB stating 
the relationship of particular legislation and reports thereon to the 
program of the President or stating the views of 0MB as a staff agency 
for the President with respect to such legislation and reports. 

b. Agency. — Any executive department or independent commission, 
board, bureau, office, agency. Government-owned or controlled corpo- 
ration, or other establishment of the Government, including regula- 
tory commission or board, and also the municipal government of the 
District of Columbia. 

c. Proposed legislation.* — A draft bill with supporting documents 
which an agency wishes to present to Congress for its consideration. 
Also, any proposal for or endorsement of legislation included in an 
agency's annual or special report or in other w^ritten form which an 
agency proposes to transmit to the Congress, or to any member or 
committee, or to make available to any study group, commission, or 
the public. 



♦The terms "proposed legislation" and "report" do not include materials submitted In 
justification of appropriation requests or proposals for reorganization plans. 



897 



OFFICE OF MANAGEMENT AND BUDGET 

d. Pending hill, — Any bill or resolution which has been introduced 
in Congress or any amendment to a bill or resolution while in com- 
mittee or when proposed for House or Senate floor consideration dur- 
ing debate. Also, any proposal placed before the conferees on a bill 
which has passed both Houses. 

e. Report {including testimony) .* — Any written expression of official 
views prepared by an agency on pending bills for (1) transmittal to 
any committee, Member, or officer of Congress, or (2) presentation as 
testimony before a congressional committee. 

f . Enrolled hill. — A bill or resolution passed by both Houses of Con- 
gress and presented to the President for his action. 

6. Agency legislative programs, 

a. Suhmission to 0MB, — Each agency shall prepare and submit to 
0MB annually its proposed legislative program for the next session 
of Congress. These programs must be submitted at the same time as 
the initial submission of an agency's annual budget request as required 
by 0MB Circular No. A-11. Timely submission is essential for con- 
sideration of the items in the programs by Executive Office staff in 
assisting the President in preparing his budget, legislative program, 
and annual and special messages. 

b. Late suhmission. — Items not included in an agency's legislative 
program and which have significant upward impact on the annual 
budget under preparation will not be considered later unless they 
are the result of circumstances not foreseeable at the time final decisions 
are made on the budget. 

c. Numher of copies. — Each agency shall furnish 20 copies of its 
proposed legislative program to 0MB. If an agency has no proposals 
to make, it should submit a statement to this effect. 

d. Program content, — Each agency shall prepare its legislative pro- 
gram in accordance with Attachment A and its submission should 
include : 

(1) All items of legislation which an agency contemplates propos- 
ing to Congress (or actively supporting, if already pending legisla- 
tion) during the coming session, including proposals to extend expir- 
ing laws or repeal provisions of existing law. These items should be 
l3ased on policy-level decisions within the agency and should take 
into account the President's known legislative, budgetary, and other 
relevant policies. 

(2) A separate list of legislative proposals under active considera- 
tion in the agency which have not yet reached the stage of inclusion in 
its proposed legislative program. For each item in this list, the agency 
should indicate when it expects to reach a policy-level decision and, 
specifically, whether it expects to propose the item in time for its 
consideration for inclusion in the annual budget under preparation. 

(3) A separate list of all laws or provisions of law affecting an 
agency which will expire between the date the program is submitted to 
0MB and the end of the two following calendar years, whether or 
not the agency plans to propose their extension. Agencies should pro- 
pose extensions of expiring laws in the congressional session occurring 
in the year preceding the expiration date. 



•The terms "proposed legislation" and "report" do not Include materials submitted In 
Justification of appropriation requests or proposals for reorganization plans. 



898 



OFFICE OF MAXAGEMEXT AXD BUDGET 

(4) All items in the submissions which are proposed, or expected 
to be proposed, for inclusion in the annual budget shall be accom- 
panied by a tabulation showing amounts for the budget year and for 
each of the four fiscal years following the budget year as required 
by section 221(a) of P.L. 91-510, the Legislative Reorganization Act 
of 1970 (31 U.S.C. 11(a) (12)). (For language of this section, see 
Attachment B.) The criteria provided in 0MB Circular No. A-11 
shall be used in preparing these tabulations and are also set forth in 
Attachment B. 

e. Relationship to advice. Submission of a legislative program to 
0MB does not constitute a request for advice on specific legislative 
proposals. Such requests should be made in the manner prescribed in 
paragraph 7 of this Circular. 

7. Clearance of agency proposed legislation and reports — The orig- 
inating agency shall submit to 0MB for clearance, proposed legisla- 
tion or reports (as defined in paragraphs 5c and 5e) before they are 
transmitted outside the executive branch. Agencies should not commit 
themselves to testify on pending bills or to submit reports or proposed 
legislation to Congress on a time schedule which does not allow 
orderly coordination and clearance to take place. To facilitate con- 
gressional action on Administration proposals and to forestall hasty, 
last-minute clearance requests on pending legislation, agencies should 
plan their submission to 0MB on a time schedule which will permit 
such coordination and clearance to take place. Pai-ticular care should 
be given to insuring that draft legislation to carry out Presidential 
legislative recommendations is submitted promptlv to 0MB with the 
maximum possible allowance for analysis and review. 

a. Timing of agency stihmissions. 

(1) Agencies should submit proposed legislation, reports and testi- 
mony to 0MB well in advance of the desired date of transmission to 
the Congress. 

(2) Depending on the complexity and significance of the subject 
matter, the policy issues involved, and the number of agencies affected, 
an adequate period for clearance by 0MB may range from several 
days to a number of months. Agencies shall consult with 0MB staff 
as to necessary periods for clearance, particularly in cases of major or 
complex legislation. 

(3) On occasion, very short periods for clearances may be un- 
avoidable because of congressional time schedules or other factors. 
Xevertheless, agencies should make every effort to give 0MB a mini- 
mum of three full working days for clearance of proposed reports or 
testimony. 

(4) Agencies shall state in their letters of transmittal to 0MB any 
information on congressional schedules or other special circumstances 
which may require expedited clearance. 

b. Copies to he fwmished. Agencies should furnish at least six copies 
of proposed legislation (and supporting materials) and draft reports 
or testimony to 0MB. In cases where wide circulation or expedited 
action may be required, the originating agency shall consult informally 
in advance with appropriate 0MB staff as to the number of copies to 
be supplied. 

c. Items to he included in agency suhmissions. 

(1) Agencies should identify proposed legislation submitted to 
0MB by using the number assigned to the proposal in the agency's 

899 



OFFICE OF MANAGEMENT AND BUDGET 

legislative program submission; e.g., Agriculture, 92-12 (see Attach- 
ment A). They shall furnish with each proposal a draft of the trans- 
mittal letter to the Speaker of the House and the President of the 
Senate as well as background information and justification, including 
where applicable : 

(a) an analysis of the provisions of the proposed legislation: 

^b) comparison with existing law ; 

(c) comparison with previous agency proposals or related bills 
introduced in the Congress ; 

( d ) a statement of other agencies' interests ; 

(e) an indication of any consultation with other agencies in the 
development of the proposal ; 

(f) an indication of the impact on State and local governments 
where significant ; and 

(g) information required by statute or by Administration policies, 
as for example, that noted in paragraph 7d below. 

(2) Similarly, in their letters requesting advice on reports or tes- 
timony, agencies should identify related bills and set forth any rele- 
vant comments not included in the report or testimony itself. 

(3) In cases where legislation carries out a Presidential recom- 
mendation, agencies should include in the proposed report or the letter 
transmitting proposed legislation a statement identifying the recom- 
mendation and indicating the degree to which the legislation concerned 
will carry it out. 

(4) Agencies shall include in their letters to 0MB requesting clear- 
ance of proposed legislation and of those reports favoring legislation, 
an estimate of the budget authority and budget outlays for each of the 
first five years needed to carry out responsibilities under the legisla- 
tion involved. The relationship of the first (or second) year's esti- 
mate to the President's budget should be described. 

(5) Similarly, if the legislation in question would effect savings, 
increase or decrease Federal revenues, or affect the receipts or outlays 
of trust or special funds, agencies shall include in their transmittal 
letters to 0MB estimates of these savings or changes. 

(6) All estimates should be on a fiscal year basis. Estimates of 
budget authority and budget outlays shall be projected on the basis of 
the criteria set forth in Attachment B. 

d. Certain statutory requirements and Administration policies. In 
the preparation of proposed legislation and reports, agencies shall 
carefully consider and take into account certain requirements of exist- 
ing law and Administration policies and directives, which are of gen- 
eral applicability. Agency reports and proposed legislation, shall to 
the maximum extent possible, contain or be accompanied by, appro- 
priate recommendations, statements, or provisions to give effect to such 
requirements, including the following : 

(1) Civil Rights: Laws, Executive Orders, and other relevant di- 
rectives in the civil rights area shall receive full consideration. These 
include Title VI of the Civil Eights Act of 1964 (42 U.S.C. 2000d) 
providing for equal access to and benefits from programs receiving 
Federal financial assistance; Titles VIII and IX of Public Law 90- 
284 (42 U.S.C. 3601ff and 3631) providing for equal opportunity in 
housing; section 2(8) of Public Law 85-536 (15 U.S.C. 637) pro- 
viding the basis for channeling Federal agency procurement to minor- 
ity businesses; the directives relating to equal employment opportu- 

900 



OFFICE OF MANAGEMENT AND BUDGET 

nity in the Federal Service and in private employment by Federal 
contractors (Executive Orders 11246 and 11478) ; and the directive on 
planning, acquisition, and management of Federal space (Executive 
Order 11512). 

(2) Environmental impact: Public Law 91-190 (42 U.S.C. 4332) 
requires that agencies prepare detailed statements concerning the 
environmental impact of major Federal actions (including recom- 
mendations or reports on proposals for legislation) significantly af- 
fecting the quality of the human environment. Implementation of this 
requirement is dealt with generally in guidelines issued by the Council 
on Environmental Quality. However, information copies of required 
102 statements should be submitted to 0MB if available at the time 
clearance is requested. 

(3) Cost analysis : Public Law 89-554 (5 U.S.C. 2953) requires that 
in certain cases agency reports and proposed legislation include five- 
year estimates of additional expenditures and manpower which would 
result from enactment of legislation. Public Law 91-510, sections 
252(a) and (b), impose a similar requirement on congressional com- 
mittees and require a comparison of the committee estimates with the 
five-year estimates of costs provided by executive agencies. (For ready 
reference, these statutory provisions are set forth in Attachment C.) 

e. 0MB action on agency suh^nissiwis. 

(1) Upon receipt of an agency's proposed legislation or report, 
0MB will undertake the necessary coordination with other interested 
agencies. If congressional committees have not requested reports from 
all of the interested agencies, 0MB will request additional agency 
views within specified time limits which must be carefully observed. 
It will consult with the President, when appropriate, and undertake 
such staff work for him as may be necessary in cooperation with othelr 
Presidential staff. It may request the originating agency to provide 
additional information; or it may arrange interagency meetings to 
exchange views, resolve differences of opinion, or to clarify the factual 
situation. 

(2) When coordination is completed, 0MB will transmit advice to 
the appropriate agencies, either in writing or by telephone. In trans- 
mitting advice, it may indicate considerations which agencies should 
or may wish to take into account before submitting proposed legisla- 
tion or reports to the Congress. 

f . Agency action on receipt of advice from 0MB. 

(1) Agencies shall incorporate in their reports and in their letters 
transmitting proposed legislation to the Congress, the advice received 
from 0MB. 

(2) In the case of reports, receipt of advice contrary to views 
expressed does not require an agency to change its views. In such cases, 
however, the agency will review its position. If it decides to modify 
its views, the agency shall consult with 0MB to determine wha> 
change, if any, in advice previously received is appropriate. If, after 
the review, the agency's views are not modified, it shall incorporate 
the advice received in full in its report. 

(3) In the case of proposed legislation^ Fhe originating agency shall 
not submit to Congress any proposal which 0MB has advised is in 
conflict with the programs of the President. 



901 



OFFICE OF MANAGEMENT AND BUDGET 

(4) Agencies shall furnish to 0MB a copy of all proposed legisla- 
tion, transmittal letters, and reports (including testimony) in the 
form actually transmitted to the Congress. In cases where reports or 
testimony cover more than one bill, agencies shall furnish one copy 
for each bill. 

g. Agency action where 'prior clearam.ce ha^ not teen effected. 

(1) Agencies shall not submit to Congress proposed legislation 
which has not been coordinated and cleared within the executive 
branch in accordance with the provisions of this Circular. 

(2) If congressional time schedules do not permit an agency to 
transmit its proposed report in time for the normal clearance and 
advice, the agency shall consult informally with 0MB as to the advice 
to be included in the proposed report. OMB may advise the agency 
to state in its report that time has not permitted securing advice from 
OMB as to the relationship of the proposed report to the program 
of the President. Agencies shall transmit to OMB four copies of such 
reports at the same time that they are transmitted to the Congress. 
Where appropriate, OMB will subsequently furnish advice on the 
report, which the agency shall transmit promptly to the Congress. 

(3) In cases where an agency has not submitted a report for clear- 
ance and its views on pending legislation are to be expressed in the 
form of oral, unwritten testimony, OMB will undertake such co- 
ordination and give such advice as the circumstances permit. In pre- 
senting oral testimony, the agency should indicate what advice, if 
any, has been received from OMB. If none has been obtained, the 
agency should so indicate. 

h. Drafting service. Agencies need not submit for clearance bills 
which they prepare as a drafting service for a congressional committee 
or a Member of Congress, provided that they state in their transmittal 
letters that the drafting service does not constitute a commitment with 
respect to the position of the Administration or the agency. Agencies 
are encouraged to advise OMB of these drafting service requests while 
the requests are being complied with. A copy of each such draft bill 
and the accompanying letter should be furnished to OMB at the time 
of transmittal, together with an explanatory statement of what the 
bill would accomplish if that is not contained in the transmittal letter. 

i. Transmittal of agency com/m/wnications to the Congress. Agencies 
should observe the instructions in House and Senate rules to forward 
proposed legislation or various reports required by law to the Speaker 
of the House and the President of the Senate. These instructions do 
not require that reports which have been requested by committee 
chairmen on bills and resolutions pending before their committees be 
sent to the Speaker of the House and the President of the Senate. 
Such reports should be transmitted directly to the requesting 
committee. 

j. Reclearance requirements. (1) The advice received from OMB 
generally applies to all sessions of each Congress, but does not carry 
over from one Congress to the next. Accordingly, agencies do not need 
to seek reclearance of reports on which they have already received 
advice before making the same reports on identical bills introduced in 
the same Congress, unless considerable time has elapsed or changed 
conditions indicate that the need for reclearance is appropriate or 
should be rechecked. Agencies shall, in cases where reclearance does 
not take place, include in the subsequent report appropriate reference 

902 



OFFICE OF MANAGEMENT AND BUDGET 

to the advice received on the original report. They shall also transmit 
one copy of any subsequent report to 0MB at the same time that it is 
transmitted to the Congress. The transmittal letter to 0MB should 
indicate what related report was previously cleared. 

(2) Agencies wishing to request reclearance of a draft bill or report, 
identical or substantially similar to one cleared for transmittal to a 
previous Congress should transmit their request in a form similar to 
that illustrated in Attachment D. Submittal of lists of bills or reports 
will not suffice for this purpose. 

(3) Agencies need not submit for clearance reports or written 
testimony on pending legislation if they have already received advice 
on the same legislation and the report or testimony simply confirms 
or enlarges on previously cleared reports or testimony and raises no 
new issue. However, prior to submitting such reports or testimony, 
agencies shall consult informally witli an appropriate 0MB staff 
member. Where appropriate, 0MB may request submission of the 
report or testimony for clearance even if advice has previously been 
given with respect to the same legislation. In either case, agencies 
shall furnish 0MB a copy of the report or testimony as sent or 
delivered. 

k. Use of no comment reports. As a general rule, agencies should 
submit no comment reports only when they have no interest in the 
pending legislation or nothing to contribute by way of informed 
comment. Agencies should submit such reports for normal clearance, 
imless a different procedure is informally arranged Avith 0MB. In 
either event, they should furnish 0MB with one copy of each such 
report at the time it is transmitted to Congress. 

8. Interagency/ consultation. — In carrying out their legislative 
functions, agencies are encouraged to consult with each other in order 
that all relevant interests and points of view may be considered and 
accommodated, where appropriate, in the formulation of their posi- 
tions. Such consultation is particularly important in cases of over- 
lapping interests, and intensive efforts should be made to reach inter- 
agency agreement before proposed legislation or reports are trans- 
mitted to 0MB. However, in order that the President may have the 
individual views of the responsible heads of the agencies, any pro- 
posed legislation or rejDorts so coordinated shall be transmitted to 
0MB by the individual agencies involved with appropriate refer- 
ence to the interagency consultation which has taken place. 

9. Enrolled hills. — Under the Constitution, the President has 10 
days (including holidays but excluding Sundays) to act on enrolled 
bills after they are presented to him. To provide the fullest possible 
opportunity for Presidential consideration, agencies shall give en- 
rolled bills top priority handling. 

a. Initial 0MB action.. 0MB will obtain facsimilies of enrolled 
bills from the Government Printing Office and immediately forward 
one facsimile to each interested agency, requesting the agency's views 
and its recommendation for Presidential action. 

h. Agency action. Each agency receiving such a request shall im- 
mediately prepare a letter presenting its views and deliver it in dupli- 
cate to 0MB not later than two working days after receipt of the 
facsimile. Different deadlines may be fixed as dictated by circum- 
stances. Agencies shall deliver these letters by special messenger to 

45-705 - 79 - U 903 



OFFICE OF MANAGEMENT AND BUDGET 

c. Preparation of views letters. 

(1) Agencies' views letters on enrolled bills are transmitted to 
the President and should be written with the objective of assisting 
him in reaching a decision. Each letter should therefore be com- 
plete in itself and should not as a general rule incorporate by refer- 
ence earlier reports. 

(2) Views letters on enrolled bills are privileged communications 
and agencies shall be guided accordingly in determining their content. 

(3) Because of the definitive nature of Presidential action on en- 
rolled bills, agency views letters shall be signed by a Presidential 
appointee. 

(4) Agencies' views letters shall contain : 

(a) an analysis of the significant features of the bill including 
changes from existing law (0MB staff will communicate with the 
agencies on which one should write the detailed analysis of the bill 
where more than one agency is substantially affected) ; 

(b) a comparison of the bill with Administration proposals, if any, 
on the same subject ; 

(c) such comments, criticisms, analyses of benefits and short- 
comings, or special considerations as will assist the President in 
reaching a decision ; 

(d) identification of any factors which make it necessary or de- 
sirable for the President to act by a particular date ; 

(e) an estimate of the first-year and recurring costs or savings and 
the relationship of the first-year estimates to the President's budget ; 
and 

(f ) a specific recommendation for approval or disapproval by the 
President. 

(5) Agencies recommending disapproval shall submit with their 
views letters a proposed veto message or memorandum of disapproval, 
in quadruplicate, prepared on legal-size paper and double-spaced. 
Such messages or memoranda should be finished products in form and 
substance which can be used by the President without further revision. 

(6) Agencies may wish, in exceptional cases, to recommend issu- 
ance of a signing statement by the President. Agencies so recom- 
mending shall submit with their views letters a draft of such state- 
ment, in the same form and quantity as required for a proposed veto 
message. 

(7) Agencies' views letters on private bills shall cite, where appro- 
priate, precedents which support the action they recommend or which 
need to be distinguished from the action recommended. 

d. Subsequent 0MB action. 0MB will transmit to the President 
agencies' views letters, together with a covering memorandum, not 
later than the fifth day following receipt of the enrolled bill at the 
White House. 

10. Agency legislative liaison oftcers. As an additional means of 
effecting interagency coordination, 0MB will furnish agencies from 
time to time with lists of the liaison officers who have been designated 
by their agencies to handle the coordination of legislative matters. 
Agencies should promptly notify 0MB of any change in their liaison 
officers. 

11. Comnvu/nications to 0MB. 

a. Written agency communications to 0MB transmitting proposed 
legislation, proposed reports, views letters on other agencies' proposed 

904 



OFFICE OF MANAGEMENT AND BUDGET 

legislation or reports, and views letters on enrolled bills should gen- 
erally be addressed to : 
Director, Office of Management and Budget. 
Attention : Assistant Director for Legislative Reference. 

The envelopes containing such communications should be 
addressed : 

Legislative Reference Division, 
Office of Management and Budget, 
Room 458, Old Executive Office Building, 
unless a different arrangement is made with an appropriate 0MB staff 
member. 

b. Questions on status of proposed legislation, reports, testimony, 
or enrolled bills shoud be directed to appropriate 0MB staff or to the 
Legislative Information Center (telephone 395-3900; IDS code 
103-3900). 

Caspar W. Weinberger, Director. 
Attachments. 



ATTACHMENT A 

(Circular No. A-19 Revised) 

Instructions Relating to the Preparation of 
Agency Legislative Programs 

1. Agencies' proposed legislative program should be divided into 
two parts : 

PART I — president's PROGRAM PROPOSALS 

Those items which the agency believes are of sufficient importance 
to be included in the President's legislative program and given spe- 
cific endorsement by him in one of the regular annual messages, such 
as the budget message, or in a special message. 

PART II ALL OTHER PROPOSALS 

2. Within each Part, agencies should list the items in order of rela- 
tive priority. Each item of proposed legislation should be given a sep- 
arate number for purposes of ready identification, using a number- 
ing system which identifies. the Congress; e.g.. Agriculture, 92-12. 

3. With respect to each item, agencies should provide the following 
information : 

a. A brief description of the proposal, its objectives, and its rela- 
tionship to existing programs. Agencies should include greater detail 
on the specific provisions of proposals included in Part I, or where the 
subject matter of the proposal contains new policies or programs or 
raises complex issues. 

b. Pertinent comments as to timing and readiness of draft legislation. 

c. Pertinent references to bills and reports concerning the subject 
of the proposal in current or recent sessions of Congress. 

d. An estimate of (1) any budget authority and outlays which would 
be required during each of the first five years, (2) any savings in budget 
authority and outlays, or (3) any changes in budget receipts. These 
estimates should be made for both Federal funds and trust funds. 

905 



OFFICE OF MANAGEMENT AND BUDGET 

4. The lists of (a) legislative proposals still under consideration in 
an agency and (b) expiring laws (see paragraph 6 of the Circular) 
should be presented separately from Parts I and II. The following 
special instructions apply to them : 

a. Items still under consideration should be listed in approximate 
order of priority and each briefly described in terms of subject matter 
and status. 

b. Each expiring law should be described in terms of (1) the sub- 
ject, (2) the citation, (3) the date of expiration, (4) the agency's 
views as to whether the law^ should be extended or permitted to ex- 
pire, and (5) and other pertinent information. If an agency recom- 
ments extension, the proposal should be included in Part I or Part II, 
as appropriate. 

5. The legislative program submission should be prepared on 
8 X 101/^ size paper. General conformance to the format of the attached 
exhibit will greatly facilitate the use of these programs. 

EXHIBIT FOE ATTACHMENT A 

(Circular No. A-19 Revised) 
Department of Government 

Proposed legislative program for the session of the Con- 
gress. (Items in each Part are listed in order of priority.) 

FART I — president's PROGRAM PROPOSALS 

9^1. ''''GI BilV^ — authorize increases in educational assistam.ce rate: 
This proposal would increase educational assistance allowances pay- 
able under chapters 31, 34, and 35 of title 38. These programs include 
vocational rehabilitation training for disabled veterans; education, 
vocational, cooperative, on- job, farm cooperative, and apprentice 
training for veterans; and institutional and cooperative training for 
children, widows and wives of deceased or totally and permanently 
service-connected disabled veterans. 

The suggested new rate for a single veteran with no dependents 
who is pursuing a full-time institutional program would, for exam- 
ple, be $190 per month compared with the currently $175 monthly rate. 
This represents an increase of approximately 8.6% which is tanta- 
mount to the increase in the cost of living which has occurred since 
the last increase became effective on February 1, 1970. It is believed 
that substantial increases should be provided in the on- job and appren- 
tice training programs — areas in which it is felt that larger increases 
are justified. 

Although precise cost data has not been determined, it is believed 
that the annual increased cost would be of the magnitude of approxi- 
mately $175 million. 

92-2. * * *. 

part II ALL OTHER PROPOSALS 

92-3. Repeal of Naval Stores, Wool Standards, and Tobacco Seed 
amd Plant Exportation Acts. This proposal would repeal 3 Acts which 



906 



OFFICE OF MANAGEMENT AND BUDGET 

are no longer necessary. The Agricultural Marketing Act of 1946 pro- 
vides authorities to effectively carry out the purposes of the Naval 
Stores Act of 1923 and the Wool Standards Act of 1928. There is no 
constructive purpose to be served by the Tobacco Seed and Plant Ex- 
portation Act of 1940 in its restriction of American exports to tobacco 
seed and plants for experimental purposes only, since most of the to- 
bacco producing countries of the world have well established research 
programs in tobacco seed breeding and production. Legislation to re- 
peal these Acts was introduced in the 91st Congress as S. 568 but no 
action was taken. 

(Dollars In thousands) 





1973 


1974 


1975 


1976 


1977 






-59 
-59 


-59 
-59 


-59 
-59 


-59 


Outlays. -. 




-59 









ATTACHMENT B 

(Circular No. A-19 Kevised) 

Five- Year Projections for Legislative Proposals 

Section 221(a) of Public Law 91-510, the Legislative Reorganiza- 
tion Act of 1970 (31 U.S.C. 11(a) (12)), requires that the annual 
budget include projections of appropriation requirements for four 
years beyond the budget year. The pertinent language of that section 
is set forth below for ready reference : 

"(12) with respect to each proposal in the Budget for new or addi- 
tional legislation which would create or expand any functions, activity, 
or authority, in addition to those functions, activities, and authori- 
ties then existing or as then being administered and operated, a tabu- 
lation showing — 

"(A) the amount proposed in the Budget for appropriation and 
for expenditure in the ensuing fiscal year on account of such pro- 
posal ; and 

"(B) the estimated appropriation required on account of such pro- 
posal in each of the four fiscal years, immediately following that en- 
suing fiscal year, during which such proposal is to be in effect." 

CRITERIA FOR FIVE-YEAR PROJECTIONS 

A. 0MB Circular No. A-IJ provides that five-year projections for 
legislative proposals included in the annual budget are to be developed 
on the basis of the following criteria : 

1. The estimates shown for the budget year will be the same as the 
amounts contained in the regular program and financing schedules 
for those ongoing activities which require additional authorizing leg- 
islation ; and the amount contained in schedules headed, "Proposed for 
separate transmittal under proposed legislation." 

2. Estimates should be provided at a high level of program aggre- 
gation, avoiding relatively small details and program specifics for 
which five-year projects would be highly conjectural. 

3. The 5-year estimates should be recognized as simple projections 
of cost (in constant dollars at prices existing at the time the estimates 

907 



OFFICE OF MANAGEMENT AND BUDGET \ 

are prepared) , whicli : (a) are not intended to predict future economic 
conditions, and (b) do not reflect possible changes in the scope or qual- 
ity of the program which might result from experience gained in ac- 
tual practice. 

4. In the case of legislation authorizing nonrecurring, one-time 
projects or activities, the estimates should provide for phasing the 
total cost over the period of time required for completion of the work 
involved. 

5. In the case of legislation which extends ongoing programs, the 
forward projections should reflect only the discretionary program 
decisions made for the budget year. That is, the future year estimates 
should be a simple extension of the budget-year program level, with 
exceptions to be considered only where the program level is deter- 
mined by statutory or other provisions which make the future year 
size of the program uncontrollable (e.g., beneficiary population 
growth) ; or where the legislation or other provisions clearly add a 
new component or activity to an ongoing program or significantly re- 
vise an ongoing program (in which case the estimates should include 
an appropriate amount to cover the cost of the added activity). 

In the case of such legislation renewing or extending ongoing pro- 
grams amounts for new substantive activities (i.e., activities not 
authorized in existing or expiring legislation or proposed reductions 
in activities) should be shown separately as nonadd entries. These 
entries should reflect only the increased (or decreased) costs due to 
policy changes proposed in the reauthorization legislation and should 
exclude the changes in funding requirements due to factors uncon- 
trollable under current (or expiring) law, such as beneficiary popu- 
lation growth (or decline), etc. 

6. Similarly, in the case of legislation authorizing new programs, 
the forward estimates should reflect only the discretionary decisions 
made for the budget year. Thus, the forward estimates will be a sim- 
ple projection of the amount required for continuation on an annual 
basis of the approved program level that was incorporated in the esti- 
mate for the budget year. The projection for future years may, if and 
only if appropriate, take account of uncontrollable factors such as 
population growth; for example, population growth (or other demo- 
graphic factors) may be considered if, and only if, it is clearly recog- 
nized in the legislation or other provisions as a determining factor 
in the size of the program. 

B. The Budget of the United States Government^ Fiscal Year 
1973^ Table 16^ entitled "Legislative Proposals for Major New and 
Expanded Programs in the 1973 Budget," contains the following per- 
tinent footnote: 

"This table is supplied pursuant to the requirements of sec. 221(a) 
of the Legislative Reorganization Act of 1970 (Public Law 91-510). 
Except for cost-of-living adjustments for social security and veterans 
compensation, the estimates represent simple projections of cost ex- 
pressed in constant dollars at prices existing at the time the estimates 
are prepared. They are not intended to predict future economic con- 
ditions; they do not reflect possible changes in the scope or quality 
of the proposal which might result from experience gained in actual 
practice ; nor do they reflect in all cases possible reductions in the costs 
of other programs that may come about as a result of adoption of the 



908 



OFFICE OF MANAGEMENT AND BUDGET 

proposals. Further, the resources which mi^ht appropriately be ap- 
plied in later years will require a reexamination of the relative priori- 
ties of these and other Government programs, in the light of economic 
and other circumstances then prevailing. Thus, the estimates do not 
represent a commitment as to amounts to be included in future 
budgets. 

ATTACHMENT C 

(Circular Xo. A-19 Revised) 

PUBLIC LAW 8 9-5 54 (5 U.S.C. 29 53) 

" (a) Each report, recommendation, or other communication, of an 
official nature, of an executive agency which — 

"(1) relates to pending or proposed legislation which, if enacted, 
will entail an estimated annual expenditure of appropriated funds 
in excess of $1,000,000. 

"(2) is submitted or transmitted to the Congress or a committee 
thereof in compliance with law or on the initiative of the appropriate 
authority of the executive branch, and 

"(3) officially proposes or recommends the creation or expansion, 
either by action of the Congress or by administrative action, of a func- 
tion, activity, or authority of the executive agency to be in addition 
to those functions, activities, and authorities thereof existing when 
the report, recommendation, or other communication is so submitted 
or transmitted; shall contain a statement concerning the executive 
agency, for each of the first 5 fiscal years during which each additional 
or expanded function, activity, or authority so proposed or recom- 
mended is to be in effect, setting forth the following information : 
"(A) The estimated maximum additional — 

"(i) man-years of civilian employment, by general categories of 
positions ; 
"(ii) expenditures for personal services; and 
" (iii) expenditures for all purposes other than personal services ; 
which are attributable to the function, activity, or authority which 
will be required to be effected by the executive agency in connection 
with the performance thereof; and 

"(B) such other statement, discussion, explanation, or other infor- 
mation as is considered advisable by the appropriate authority of the 
executive branch or that is required by Congress or a committee 
thereof. 
"(b) Subsection (a) of this section does not apply to — 
"(1) the Central Intelligence Agency; 
"(2) a Government controlled corporation; or 
"(3) the General Accounting Office." 

PUBLIC LAW 91-510. THE LEGISLATIVE REORGANIZATIOX ACT OF 1970 
SECTIONS 2 52(a) (2 U.S.C. 190J) AND 252(b) 

Section 252(a) of the Act provides: 

" (1) the report accompanying each bill or joint resolution of a pub- 
lic character reported by any committee of the Senate (except the 
Committee on Appropriations) shall contain — 



909 



OFFICE OF MANAGEMENT AND BUDGET 

"(A) An estimate, made by such committee, of the costs which 
would be .incurred in carrying out such bill or joint resolution in the 
fiscal year in which it is reported and in each of the five fiscal years 
following such fiscal year (or for the authorized duration of any pro- 
gram authorized by such bill or joint resolution, if less than five years) , 
except that, in the cause of measures affecting the revenues, such re- 
ports shall require only an estimate of the gain or loss in revenues for a 
one-year period ; and 

"(B) a comparison of the estimate of costs described in subpara- 
graph (a) made by such committee with any estimate of costs made 
by any Federal agency ; or 

"(C) in lieu of such estimate or comparison, or both, a statement 
of the reasons why compliance by the committee with the requirements 
of subparagraph (A) or (B), or both, is impracticable. 

" (2) It shall not be in order in the Senate to consider any such bill 
or joint resolution if such bill or joint resolution was reported in the 
Senate after the effective date of this subsection and the report of that 
committee of the Senate which reported such bill or joint resolution 
does not comply with the provisions of paragraph (1) of this 
subsection." 

Section 252(b) amends the Rules of the House of Representatives 
by adding similar language applicable to House committees. 

ATTACHMENT D 

(Circular No. A-19 Revised) 

Executive Office of the President, 
Office of Management and Budget, 

Washington^ D,C, 

Director, Office of Management and Budget, 
Executive Oifice of the President^ 
Washington, D,C. 20503 

Attention : Assistant Director for Legislative Reference. 
Subject: Proposed report on H.R. 10000, 92d Congress. 

The Department of Government has been requested to submit a re- 
port on the subject bill, which is identical with H.R. 9000 of the 91st 
Congress. 

Will you please advise whether there is any objection to submitting 
the same report on the subject bill as was cleared by you on June 27, 
1970, except for the following modifications : 



910 



OFFICE OF MANAGEMENT AND BUDGET 
[Rev. Circular A-95] 

Federal and Federally Assisted Programs and Projects 

Evaluation, Review, and Coordination 

January 2, 1976. 

1. Purpose. This Circular furnishes guidance to Federal agencies 
for cooperation with State and local governments in the evaluation, 
review, and coordination of Federal and federally assisted programs 
and projects. The Circular promulgates regulations (Attachment A) 
which provide, in part, for: 

a. Encouraging the establishment of a project notification and re- 
view system to facilitate coordinated planning on an intergovern- 
mental basis for certain Federal assistance programs in furtherance 
of section 204 of the Demonstration Cities and Metropolitan Develop- 
ment Act of 1966 and Title IV of the Intergovernmental Cooperation 
Act of 1968 (Attachment B). 

b. Coordination of direct Federal development programs and proj> 
ects with State, areawide, and local planning and programs pursuant 
to Title IV of the Intergovernmental Cooperation Act of 1968. 

c. Securing the comments and views of State and local agencies 
which are authorized to develop and enforce environmental standards 
on certain Federal or federally assisted projects affecting the envi- 
ronment pursuant to section 102(2) (C) of the National Environ- 
mental Policy Act of 1969 (Attaclunent (C)) and regulations of the 
Council on Environmental Quality. 

d. Furthering the objectives of Title VI of the Civil Rights Act of 
1964. 

This Circular supersedes Circular No. A-95 (Revised), dated No- 
vember 13, 1973 (Part II, Federal Register, Vol. 38, No. 228, pp. 
32874-32881, November 23, 1973). It will become effective February 
27, 1976.^ 

2. Basis. This Circular has been prepared pursuant to: 

a. Section 401(a) of the Intergovernmental Cooperation Act of 
1968 which provides, in part, that : 

The President shall * * • establish rules and regulations governing the for- 
mulation, evaluation and review of Federal programs and projects having a 
significant impact on area and community development. * * * 

and the President's Memorandum of November 8, 1968, to the Director 
of the Bureau of the Budget (Federal Register, Vol. 33, No. 221, 
November 13, 1968) which provides : 

By virtue of the authority vested in me by section 301 of title 3 of the United 
States Code and section 401(a) of the Intergovernmental Cooperation Act of 
1968 (Public Law 90-577), I hereby delegate to you the authority vested in the 
President to establish the rules and regulations provided for in that section gov- 
erning the formulation, evaluation, and review of Federal programs and projects 



911 



OFFICE OF MANAGEMENT AND BUDGET 

having a elgnificant impact on area and community development. Including pro- 
grams providing Federal assistance to the States and localities, to the end that 
they shall most effectively serve these basic objectives. 

In addition, I expect the Bureau of the Budget to generally coordinate the 
actions of the departments and agencies in exercising the new authorizations 
provided by the Intergovernmental CJooperation Act, with the objective of con- 
■slBteut and uniform action by the Federal Government. 

b. Title IV, section 403, of the Intergovernmental Cooperation Act 
of 1968 which provides that : 

The Bureau of the Budget or such other agency as may be designated by the 
President, is hereby authorized to prescribe such rules and regulations as are 
deemed appropriate for the effective administration of this Title. 

c. Section 204(c) of the Demonstration Cities and Metropolitan De- 
velopment Act of 1966 which provides that : 

The Bureau of the Budget, or such other agency as may be designated by 
the President, shall prescribe such rules and regulations as are deemed appropri- 
ate for the effective administration of this section. 

d. Reorganization Plan No. 2 of 1970 and Executive Order No. 11541 
of July 1, 1970, which vest all functions of the Bureau of the Budget 
or the Director of the Bureau of the Budget in the Director of the 
Office of Management and Budget. 

3. Coverage, The regulations promulgated by this Circular (Attach- 
ment A) will have applicability : 

a. Under Part I, to all projects and activities (or significant sub- 
stantive changes thereto) for which Federal assistance is being sought 
under the programs listed in Attachment D or Appendix I of the 
Catalog of Federal Domestic Assistance whichever bears the later date. 
Limitations and provisions for exceptions are noted therein or under 
paragraph 8 of Part I. 

b. Under Part II, to all direct Federal development activities, in- 
cluding the acquisition, use, and disposal of Federal real property ; in 
addition, agencies responsible for granting licenses and permits for 
developments or activities significantly affecting area and community 
development or the physical environment are strongly urged to consult 
with clearinghouses on applications for such licenses or permits. 

c. Under Part III, to all Federal programs as listed in Appendix II 
of the Catalog of Federal Domestic Assistance, requiring, by statute 
or administrative regulation, a State plan as a condition of assistance. 

d. Under Part IV, to all Federal programs providing assistance to 
State, areawide, or local agencies or organizations for multi jurisdic- 
tional or areawide planning. 

4. ^^A-95: What It Is— How ItWorhs:^ A fuller discussion of the 
background, purposes, and objectives of the Circular and of the re- 
quirements promulgated thereunder may be found in the brochure. 
"A-95 : What It Is—How It Works," obtainable from the Office of 
Management and Budget or from Federal Regional Councils. 

5. 'Q.-95 Administrative Notes. ^^ From time to time 0MB will issue 
"A-95 Administrative Notes" providing interim determinations or in- 
terpretations on matters of national scope relating to administration of 
the Circular. 

6. Federal Regional CotmcHs, Federal Regional Councils are respon- 
sible for coordinating the implementation of the requirements of this 
Circular at the Federal regional level. The Office of Management and 
Budget is responsible for policy oversight of the Circular and liaison 



912 



OFFICE OF MANAGEMENT AND BUDGET 

with departmental and agency liaison officers on matters of national 
scale related to the requirements of the Circular. 

7. Federal agency implementing procedures and regulations. Agen- 
cies will develop interim procedures and regulations implementing the 
requirements of this Circular revision which will become effective on 
February 27, 1976. The interim procedures and regulations will be 
published in the Federal Register no later than February 27, 1976. 
Agencies will promulgate final implementing procedures and reg- 
ulations no later than April 29, 1976. 0MB will assist and cooperate 
with agencies in developing such procedures and regulations. 

8. Inquiries, Inquiries concerning this Circular may be addressed to 
the Regional A-95 Coordinator for the appropriate Federal Regional 
Council or to the Office of Management and Budget, Washington, D.C. 
20503, telephone (202) -395-3031. 

James T. Lynn, Director, 

Attachment A — Circular No. A-95 Revised 

Regulations Under Section 204- of t?ie Demonstration Cities and Metro- 
politan Development Act of 1966,, Title IV of the Intcrgnvemmem,tal 
Cooperation Act of 1968^ and Section 102{^) (C) of the National 
Environmental Policy Act of 1969 

part i: project notification and review system 

1. Purpose. The purpose of this Part is to : 

a. Further the policies and directives of Title IV of the Intergovern- 
mental Cooperation Act of 1968 by encouraging the establishment of 
a network of State and areawide planning and development clearing- 
houses which will aid in the coordination of Federal or federally as- 
sisted projects and programs with State, areawide, and local plan- 
ning for orderly growth and development. 

b. Implement the requirements or ^ section 204 of the Demonstration 
Cities and Metropolitan Development Act of 1966 for metropolitan 
areas within that network. 

c. Implement, in part, requirements of section 102(2) (C) of the Na- 
tional Environmental Policy Act of 1969, which require that State, 
areawide, and local agencies which are authorized to develop and 
enforce environmental standards be given an opportunity to comment 
on the environmental impact of Federal or federally assisted projects. 

d. Provide public agencies charged with enforcing or furthering the 
objectives of State and local civil rights laws with opportunity to 
participate in the review process established under this Part. 

©. Encourage, by means of early contact between applicants for 
Federal assistance and State and local governments and agencies, an 
expeditious process of intergovernmental coordination and review of 
proposed projects. 

2. Notification of intent, 

a. Any agency of State or local government or any organization or 
individual undertaking to apply for assistance to a project or major 
substantive modification thereto under a Federal program covered by 
this Part will be required to notify both the State and areawide plan- 
ning and development clearinghouse in the jurisdiction of which the 



^ So In orlglnaL 

913 



OFFICE OF MANAGEMENT AND BUDGET 

project is to be located of its intent to apply for assistance at such time 
as it determines it will develop an application. 

In the case of applications for projects involving land or water use 
and development or construction in the National Capital Region (as 
defined in section 1(b) of the National Caj^ital Planning Act of 1952, 
as amended) a copy of the notification will be sent to the National 
Capital Planning Commission (NCPC) in addition to the areawide 
clearinghouse and the appropriate State clearinghouse. NCPC is the 
official planning agency for the Federal Government in the National 
Capital Region. 

In the case of an application in any State for an activity that is 
Statewide or broader in nature (such as for various types of research) 
and does not affect nor have specific applicability to areawide or local 
planning and programs, the notification need be sent only to the State 
clearinghouse. Involvement of areawide clearinghouses in the review 
in such cases will be at the initiative of the State clearinghouse. 

Notifications will include a summary description of the project for 
which assistance will be sought. The summary description will con- 
tain the following information, as appropriate and to the extent 
available : 

(1) Identity of the applicant agency, organization, or individual. 

(2) The geographic location of the project to be assisted. A map 
should be provided, if appropriate. 

(3) A brief description of the proposed project to be assisted. A 
map should be scale, estimated cost, beneficiaries, or other character- 
istics which will enable the clearinghouses to identify agencies of State 
or local government having plans, programs, or projects that might 
be affected by the proposed projects. 

(4) A statement as to whether or not the applicant has been advised 
by the funding agency from which assistance is being sought that he 
will be required to submit environmental impact information in con- 
nection with the proposed project. 

(5) The Federal program title and number and agency under which 
assistance will be sought as indicated in Attachment D or the latest 
Catalog of Federal Domestic Assistance. (The Catalog is issued an- 
nually in the spring and is updated during the year.) In the case of 
programs not listed therein, programs will be identified by Public 
Law number or U.S. Code citation. 

(6) The estimated date the applicant expects to formally file an 
application. Many clearinghouses have developed notification forms 
and instructions. Applicants are urged to contact their clearinghouses 
for such information in order to expedite clearinghouse review. 

b. In order to assure maximum time for effective coordination and 
so as not to delay the timely submission of the completed application 
to the funding agency, notifications containing the preliminary infor- 
mation indicated above should be sent at the earliest feasible time. 

c. Applicants from federally recognized Indian tribes are not subject 
to the requirements of this Part. However, Indian tribes may volun- 
tarily participate in the Project Notification and Review System and 
are encouraged to do so. Federal agencies will notify the appropriate 
State and areawide clearinghouses of any applications from feder- 
ally recognized Indian tribes upon their receipt. Wiere a federally 
recognized Tribal Government has established a mechanism for co- 
ordinating the activities of Tribal departments, divisions, enterprises, 



914 



OFFICE OF MANAGEMENT AND BUDGET 

and entities, Federal agencies will, upon request of such Tribal Gov- 
ernment transmitted through the Office of Management and Budget, 
require that applications for assistance under programs covered bv 
this Part from such Tribal departments, divisions, enterprises, and 
entities be subject to review by such Tribal coordinating mechanism 
as though it were a State or areawide clearinghouse. 
3. Clearinghouse fymctions. Clearinghouse functions include: 

a. Evaluating the significance of proposed Federal or federally 
assisted projects to State, areawide, or local plans and programs. 

b. Receiving and disseminating project notifications to appropriate 
State and multistate agencies in the case of the State clearinghouse 
and to appropriate local governments and agencies and regional orga- 
nizations in the case of areawide clearinghouses : and providing liai- 
son, as may be necessary, between such agencies or bodies and the 
applicant. In the case of units of general local government, notifica- 
tions of all projects affecting his jurisdiction will, if requested, be sent 
to the chief executive of such imit by the areawide clearinghouse or to 
such-central agency as he may designate for review and reference to 
appropriate agencies of such unit. 

c. In the case of projects under programs covered by this Part 
located in the coastal zone, as defined in the Coastal Zone Manage- 
ment Act of 1972, assuring that the State agency, if other than the 
State clearinghouse, responsible for administration of the approved 
program for the management of the coastal zone, is given opportunity 
to review the project for its relationship to such program and its 
consistency therewith. 

d. Assuring, pursuant to section 102(2) (C) of the National Envi- 
ronmental Policy Act of 19G9, that appropriate State, multistate, area- 
wide, or local agencies which are authorized to develop and enforce 
environmental standards are informed of and are given opportunity to 
review and comment on the environmental significance of proposed 
projects for which Federal assistance is sought. 

e. Providing public agencies charged with enforcing or furthering 
the objectives of State and local civil rights laws with opportunity to 
review and comment on the civil rights aspects of the project for 
which assistance is sought. 

f. Providing, pursuant to Part II of these regulations, liaison be- 
tween Federal agencies contemplating direct Federal development 
projects and the State or areawide agencies or local governments 
having plans or programs that might be affected by the proposed 
project. 

g. In the case of a project for which Federal assistance is sought by 
a special purpose unit of local government, clearinghouses will assure 
that any unit of general local government having jurisdiction over the 
area in which the project is to be located has opportunity to confer, 
consult, and comment upon the project and the application. 

h. AATiere areawide clearinghouse jurisdictions are contiguous, co- 
ordinative arrangements should be established between the clearing- 
houses in such areas to assure that projects in one area which may 
have an impact on the development of a contiguous area are jointly 
studied. Any comments and recommendations made by or through a' 
clearinghouse in one area on a project in a contiguous area will accom- 
pany the application for assistance to that project. 



915 



OFFICE OF MAKAQEMENT AND BUDGET 

4. Consultation cmd review, a. State and areawide clearinghouses 
may have a period of 30 days after receipt of a project notification 
in which to inform State and multistate agencies and local or regional 
governments or agencies (including agencies referred to in subpara- 
graphs c, d, and e, above) that may be affected by the proposed project 
and arrange, as may be necessary, to consult with the applicant there- 
on. The review may be completed in this period and comments may 
be submitted to the applicant. 

b. If the review is not completed during this period, the clearing- 
house may work with the applicant in the resolution of any problems 
raised by the proposed project during the period in which the applica- 
tion is being completed. 

c. In cases where no project notification has been submitted and the 
clearinghouse receives only a completed application, it may have 60 
days to review the completed application. If a completed application 
is submitted during the first 30 days after a notification has been sub- 
mitted, the clearinghouse may have 30 days plus the number of days 
remaining in the initial 30 day notification period to complete its re- 
view. In all other cases, the clearinghouse may have 30 days to review 
a completed application. Where clearinghouses have not completed 
their reviews during the 30 day notification period, they are strongly 
urged to give the applicant formal notice to that effect. Where reviews 
have been completed prior to completion of an application, an infor- 
mation copy will be supplied to the clearinghouse, upon request, when 
the application is submitted to the funding agency. 

d. Written comments submitted to the areawide clearinghouse by 
other jurisdictions, agencies, or parties will be included as attachmente 
to the comments of areawide clearinghouses, when they are at variance 
with the clearinghouse comments; and others from whom comments 
were solicited and received should be listed. 

e. Under some programs, applicants — primarily nongovernmental — 
are required to submit confidential information to the funding agency. 
Such information may relate to the applicant's financial status or 
structure (e.g., overall investment program or holdings) ; to person- 
nel (e.g., personal histories of project officers) or may involve proprie- 
tary information (e.g., industrial processes, research ideas). Such con- 
fidential information need not be included with applications submitted 
to clearinghouses for review. 

f. Applicants will include with the completed application as sub- 
mitted to the Federal agency (or to the State agency in the case of 
projects for which the State, under certain programs has final project 
approval) : 

(1) All comments and recommendations made by or through clear- 
inghouses, along with a statement that such comments have been 
considered prior to submission of the application ; or 

(2) Where no comments have been received from a clearinghouse, 
a statement that the procedures outlined in this section have been 
followed and that no comments or recommendations have been 
received. 

g. Applications for renewal or continuation grants or applications 
not submitted to or acted on by the funding agency within one year 
after completion of clearinghouse review will be subject to re-review 
upon request of the clearinghouse. 



916 



OFFICE OF MANAGEMENT AND BUDGET 

5. Subject matter of comments and recommendations. Comments 
and recommendations made by or through clearinghouses with respect 
to anv project are for the purpose of assunng maximum consistency 
of such project with State, areawide, and local comprehensive plans. 
They are also intended to assist the Federal agency (or State agency, 
in the case of projects for which the State under certain Federal 
grants has final project approval) administering such a program in 
determining whether the project is in accord with applicable Federal 
law, particularly those requiring consistency with State, areawide, or 
local plans. Comments or recommendations may include, but need not 
be limited to, information about : . . •. 

a. The extent to which the project is consistent with or contributes 
to the fulfillment of comprehensive planning for the State, area, or 

localitv. 

b. The extent to which the proposed project: 

(1) Duplicates, runs counter to, or needs to be coordinated with 
other projects or activities being carried out in or affecting the area; 
or 

(2) Might be revised to increase its effectiveness or efficiency in 
relationship to other State, area, or local programs and projects. 

c. The extent to which the project contributes to the achievement 
of State, areawide, and local objectives and priorities relating to 
natural and human resources and economic and community develop- 
ment as specified in section 401 of the Intergovernmental Cooperation 
Act of 1968, including : 

(1) Appropriate land uses for housing, commercial, industrial, gov- 
ernmental, institutional, and other purposes ; 

(2) Wise development and conservation of natural resources, in- 
cluding land, water, mineral, wildlife, and others ; 

( 3 ) Balanced transportation systems, including highway, air, water, 
pedestrian, mass transit, and other modes for the movement of people 
and goods ; 

(4) Adequate outdoor recreation and open space ; 

(5) Protection of areas of unique natural beauty, historical and 
scientific interest; 

(6) Properly planned community facilities, including utilities for 
the supply of power, water, and communications, for the safe disposal 
of wastes, and for other purposes ; and 

(7) Concern for high standards of design. 

d. As provided under section 102(2) (C) of the National Environ- 
mental Policy Act of 1969, the extent to which the project significantly 
affects the environment including consideration of : 

( 1 ) The environmental impact of the proposed project ; 

(2) Any adverse environmental effects which cannot be avoided 
should the proposed project be implemented ; 

i 3 ) Alternatives to the proposed project ; 

(4) The relationship between local short term uses of man's envi- 
ronment and the maintenance and enhancement of long term pro- 
ductivity; and 

(5) Any irreversible and irretrievable commitments of resources 
which would be involved in the proposed project or action, should it 
be implemented. 

e. Effects on energy resource supply and demand. 



917 



OFFICE OF MANAGEMENT AND BUDGET 

f. The extent to which people or businesses will be displaced and 
the availability of relocation resources. 

g. As provided under section 307(d) of the Coastal Zone Manage- 
ment Act of 1972, in the case of a project located in the coastal zone, 
the relationship of the project to the approved State program for the 
management of the coastal zone and its consistency therewith. 

h. The extent to which the project contributes to more balanced 
patterns of settlement and delivery of services to all sectors of the 
area population, including minority groups. 

i. In the case of a project for which assistance is being sought by 
a special purpose unit of local government, whether the unit of general 
local government having jurisdiction over the area in which the proj- 
ect is to be located has applied, or plans to apply, for assistance for 
the same or a similar type project. This information is necessary to 
enable the Federal (or State) agency to make the judgments required 
under section 402 of the Intergovernmental Cooperation Act of 1968. 

6. Federal agency procedures. Federal agencies having programs 
covered under this Part will develop appropriate procedures for : 

a. Informing potential applicants for assistance under such pro- 
grams of the requirements of this Part (1) in program information 
materials, (2) in response to inquiries respecting application proce- 
dures. (3) in pre-application conferences, or (4) by other means which 
will assure earliest contact between applicant and clearinghouses. 

b. Assuring that all applications for assistance under programs 
covered by this part have been submitted to appropriate clearing- 
houses for review prior to their submission to the funding agency. 
Applications that do not carry evidence that both areawide and State 
clearinghouses have been given an opportunity to review the appli- 
cation will be returned to the applicant with instructions to fulfill 
the requirements of this Part. Agencies will insure that all appli- 
cations contain a State Application Identifier (SAI) number. (This 
is mandatory for use in notifying clearinghouses of action taken on 
the application.) 

c. Notifying such clearinghouses within seven working days of any 
major action taken on such applications that have been reviewed by 
said clearinghouses. Major actions will include awards, rejections, 
returns for amendment, deferrals, or withdrawals. The standard mul- 
tipurpose form, SF 424, promulgated by Federal Management Circu- 
lar 74-7, will be used for this purpose, unless a waiver has been 
granted by 01MB. (See Attachment E.) 

d. Where a clearinghouse has recommended against approval of 
an application or approval only with specific and major substantive 
changes, and the funding agency approves the application substan- 
tially as submitted, the fimding agency will provide the clearinghouse, 
along with the action notice, an explanation therefor. 

e. Where a clearinghouse has recommended against approval of a 
project because it conflicts with or duplicates another Federal or fed- 
erally assisted project, the funding agency will consult with the 
agency assisting the reference projects prior to acting, if it plans to 
approve the application. 

f. Assuring, in the case of an application submitted by a special 
purpose unit of local government, where accompanying comments in- 
dicate that the unit of general local government having jurisdiction 



918 



OFFICE OF MANAGEMENT AND BUDGET 

over the area in which the project is to be located has submitted or 
plans to submit an application for assistance for the same or a similar 
type project, that appropriate considerations and preferences as spe- 
cified in section 402 of the Intergovernmental Cooperation Act of 1968, 
are accorded the unit of general local government. "Where such pref- 
erence cannot be so accorded, the agency shall supply, in writing, to 
the unit of general local government and the Office of Management 
and Budget its reasons therefor. 

7. Housing programs. For housing programs of the Department of 
Housing and Urban Development, the Veterans Administration, and 
the Farmers Home Administration of the Departm.ent of Agriculture 
the following procedures will be followed, except as provided in sub- 
paragraph d below : 

a. The appropriate HUD, VA, or USDA/FHA office will transmit 
to the appropriate State and areawide clearinghouses a copy of the 
initial application for project approval. 

b. Clearingliouses will have 30 davs from receipt to review the 
applications "and to forward to the HUD, VA. or USDA/FHA office 
any comments which they may have, including observations concerning 
the consistency of the proposed project with State and areawide de- 
velopment plans, the extent to which the proposed project will provide 
housing opportunities for all secrments of the community, and identifi- 
cation of major environmental concerns including impact on energy 
resource supply and demand. Processing of applications in the HUD, 
VA, or USDA/FHA office will proceed concurrently with the clearing- 
house review. 

c. This procedure will include only applications involving new con- 
struction or substantial rehabilitation and will apply to applications 
for loans, loan guarantees, mortgage insurance, or other housing 
assistance : 

(1) In Urbanized Areas, as defined by the U.S. Bureau of the Census 
(see Appendix A, 1970 Census of Population, Characteristics of the 
Population or Characteristics of Housing) , to : 

(a) Subdivisions having 25 or more lots. 

(b) Multifamily projects having 50 or more dwelling units. 

(c) Mobile home courts with 50 or more spaces. 

(d) College housing provided under the debt service or direct loan 
student programs for 200 or more students. 

(2) In all other areas, to: 

(a) Subdivisions having 10 or more lots. 

(b) ^Multifamily projects having 25 or more dwelling units. 

(c) Mobile home courts with 25 or more spaces. 

(d) College housing provided under the debt service or direct loan 
program for 100 or more students. 

d. As an alternative to the above procedure, the developer may sub- 
mit his application directly to the appropriate clearinghouses prior to 
submitting it to the Federal agency. In such cases, the application, 
when submitted to the Federal agency, will be accompanied by the 
comments of the clearinghouses. 

e. Exemption : Applications for additional units in a subdivision sub- 
stantially completed (i.e., with streets, water and sewer facilities, 
•culverts, etc.) are exempted from this requirement when : 



919 



OFFICE OF MANAGEMENT AND BUDGET 

(1) The subdivision was approved and/or recorded by the appro- 
priate unit of local government within three years of the application 
submittal,; and 

(2) In cases of subdivisions approved more than three years prior, 
the clearinghouses w^aive the requirement. 

This exemption does not apply to applications for housing m an 
undeveloped subdivision or in proposed extensions of existing 

subdivisions. i • -r» j. js 

8. Coverage^ exceptions, and variations, a. Generally, this Part of 
this Circular and the laws on which it is based are concerned with 
programs providing financial assistance to projects and activities 
which have an impact on State, areawide, and local development, in- 
cluding development of natural, economic, and human resources. This 
Part is concerned with achieving the most effective and efficient utiliza- 
tion of Federal assistance programs through coordination among and 
between Federal, multistate, State, areawide, and local plans and pro- 
grams and the elimination of conflict, overlap, and duplication of 
projects and activities under such programs. Coverage under this 
Part includes, or will be extended from time to time as deemed neces- 
sary and practicable to include programs bearing upon these concerns 
and objectives. 

b. Programs not considered appropriate to this Part are programs 
of the following types : 

(1) Direct financial assistance to individuals or families for hous- 
ing, welfare, health care services, education, training, economic im- 
provement, and other direct assistance for individual and family 
enhancement. 

(2) Incentive payments or insurance for private sector activities 
not involving real property development or land use and development. 

(3) Agricultural crop supports or payments. 

(4) Assistance to organizations and institutions for the provision of 
education or training not designed to meet the needs of specific indi- 
vidual States or localities. 

(5) Research, not involving capital construction, which is national 
in scope or is not resigned ^ to meet the needs or to address problems 
of a particular State, area, or locality (except in the case of demon- 
stration or pilot research programs where projects may have an impact 
on the community or area in which they are being conducted). 

(6) Assistance to educational, medical, or similar service institutions 
or agencies for internal staff development or management improve- 
ment purposes. 

(7) Assistance to educational institutions for activities that are part 
of a school's regular academic program and are not related to local 
programs of health, welfare, employment, or other social services. 

(8) Assistance for construction involving only routine maintenance, 
repair, or minor construction which does not change the use or the 
scale or intensity of use of the structure or facility. 

c. 0MB will consider Federal agency requests for exemption of 
certain classes of projects or activities under programs otherwise 
covered which : 

(1) Meet any of the above characteristics of programs inappropriate 
for coverage under this Part; 



i So In original. 

920 



OFFICE OF MANAGEMENT AND BUDGET 

(2) Are of small scale or size or are Mghly localized as to impact ; or 

(3) Display other characteristics which might make review 

^^ d^^OjNIB will consider Federal agency requests for procedural varia- 
tions from normal review processes : . 1 . 4. • + 

(1) On a temporary basis for programs with time constraints 
brought about because of start up requirements or other unusual cir- 
cumstances beyond the control of the funding agency. (>.ote: Delay 
in fund availability is not normally an acceptable reason for a varia- 
tion. When a delay is anticipated, applicants should be instructed to 
have their applications reviewed by clearinghouses in readiness for 
submission when funds become available.) it • 

(2) For programs where statutory or related procedural limitations 
make the normal review processes impracticable. 

e. All requests from Federal agencies for exemptions or procedural 
variations should be addressed to the Associate Director for Manage- 
ment and Operations, Office of Management and Budget. 

f. Individual clearinghouses may exempt certain types of projects 
from review for reasons indicated above or for other reasons appro- 
priate to the State or area. 

g. Applicants should be made aware that, in various States, State 
law requires review of applications for Federal assistance under vari- 
ous programs not covered by this Part. Implementation of such laws 
is enforced through State rules and regulations, and applicants are 
urged to ascertain the existence of such laws and to acquaint themselves 
with applicable State procedures. 

9. Joint funding. Applications for assistance to activities under the 
Joint Funding Simplification Act (P.L. 93-510) or any otlier joint 
fmiding authority, which involve activities funded under one or more 
of the programs covered under this Part, wiU be subject to the require- 
ments of this Part. 

10. Agency procedures and regulatums. a. Proposed agency pro- 
cedures and regulations for implementing the requirements of this 
Part will be published in the Federal Register as specified in para- 
graph 7 of this Circular. Programs to which the procedures ana reg- 
ulations will apply will be cited by their numbers in the Catalog of 
Federal Domestic Assistance, ^Yhere such numbers have not yet been 
assigned, programs will be referenced by Public Law and section or 
by U.S. Code citation. Subsequent amendments to such procedures 
and regulations will also be published pursuant to paragraph 7 of 
the Circular. 

b. As a part of such proposed procedures and regulations published 
in the Federal Register, agencies may identify specific types of proj- 
ects which they believe should be exempt from coverage under pro- 
grams for which proposed procedures and regulations are being pub- 
lished. Such publication will constitute a formal request for exemp- 
tion to the Office of Management and Budget, to which it will respond 
in its review of the proposed procedures and regulations. 

c. 0MB will assist and cooperate with agencies in developing such 
procedures and regulations. 

d. A copy of agency internal procedures for implementation of this 
Part, if not contained in the aoove procedures and regulations, will 
be sent to the Associate Director of the Office of Management and 
Budget for Management and Operations. 

921 



OFFICE OF MANAGEMENT AND BUDGET 

11. Reports and directories, a. The Director of the Office of Man- 
agement and Budget may require reports, from time to time, on the 
implementation of this Part. 

b. The Office of Management and Budget will maintain and dis- 
tribute to appropriate Federal agencies a directory of State and aroa- 
wide clearinghouses. 

c. The Office of Management and Budget will notify Federal Ke- 
gional Councils, clearinghouses, and Federal agencies of any excepted 
categories of projects under covered programs. 

PART II : DIRECT FEDERAL DEVELOPMENT 

1. Purpose. The purpose of this Part is to : 

a. Provide State and local government with information on pro- 
jected Federal development so as to facilitate coordination with State, 
areawide, and local plans and programs. 

b. Provide Federal agencies with information on the relationship 
of proposed direct Federal development projects and activities to 
State, areawide, and local plans and programs; and to assure maxi- 
mum feasible consistency of Federal developments with State, area- 
wide, and local plans and programs. 

c. Provide Federal agencies with information on the possible impact 
on the environment of proposed Federal development. 

2. Coordination of direct Federal development projects with State^ 
areawide^ and local development, a. Federal agencies having responsi- 
bility for the planning and construction of Federal buildings and in- 
stallations or other Federal public works or development or for the 
acquisition, use, and disposal of Federal land and real property will 
establish procedures for : 

(1) Consulting with Governors, State and areawide clearinghouses, 
and local elected officials at the earliest practicable stage in project or 
development planning on the relationship of any plan or project to the 
development plans and programs of the State, area, or locality in 
which the project is to be located. In the case of projects in the Na- 
tional Capital Region, such consultation should be undertaken in co- 
operation with the National Capital Planning Commission. 

(2) Assuring that any such Federal plan or project is consistent or 
compatible with State, areawide, and local development plans and 
programs identified in the course of such consultations. Exceptions 
will be made only where there is clear justification. Explanation of 
any necessary inconsistency or incompatibility will be provided, in 
writing, to the appropriate clearinghouses. 

(3) Providing State, areawide, and local agencies which are au- 
thorized to develop and enforce environmental standards with 
adequate opportunity to review such Federal plans and projects pursu- 
ant to section 102(2) (C) of the National Environmental Policy Act 
of 1969. Any comments of such agencies will accompany the environ- 
mental impact statement submitted by the Federal agency. 

(4) Providing, in the case of projects located in the coastal zone,, 
the State agency responsible for administration of the approved pro- 
gram for the management of the coastal zone with opportunity to 
review the relationship of the proposed project to such program and 
its consistency therewith. 

922 



OFFICE OF MANAGEMENT AND BUDGET 

(5) Providing, through the appropriate clearinghouses, Health 
Systems Agencies and State Health Planning and Development Agen- 
cies designated pursuant to the National Health Planning and Re- 
sources Development Act of 1974 with adequate opportunity to review 
Federal projects for construction and/or equipment involving capital 
expenditures exceeding $200,000 for modernization, conversion, and 
expansion of Federal inpatient care facilities, which alter the bed 
capacity or modify the primary function of the facility, as well as 
plans for provision of major new medical care services. (Excluded 
are projects to renovate or install mechanical systems, air condition- 
ing systems, or other similar internal system modifications.) The 
agencies are expected to evaluate proposed Federal projects for con- 
sistency^ with arcawide and local health delivery plans and health sup- 
ply-demand situations, as well as considering clearinghouse comments 
on such specific points as those listed in paragraph 5 of Part I. The 
comments of such agencies and any clearinghouse comments will ac- 
company the plan and budget requests submitted by the Federal 
agency to the Office of Management and Budget or a certification 
that the agencies and clearinghouses had been provided a reasonable 
time to comment and had failed to do so. 

3. Use of clearinghouses. The State and areawide planning and de- 
velopment clearinghouses established pursuant to Part I will be 
utilized to the greatest extent practicable to effectuate the require- 
ments of this Part. Agencies are urged to establish early contact with 
clearinghouses to work out arrangements for carrying out the consul- 
tation and review required under this Part, including identification 
of types of projects considered appropriate for consultation and re- 
view. Clearinghouses may utilize criteria set forth in paragraph 5 of 
Part I in evaluating direct Federal development projects. 

4. Federal licensee and pennits. Agencies responsible for granting 
Federal licenses and permits for development projects and activities 
which would have a significant impact on State, interstate, areawide, 
or local development plans or programs or on the environment are 
strongly urged to consult with St;ite and areawide clearinghouses 
and to seek their evaluations of such impacts prior to granting such 
licenses or permits. 

5. Agency procedures and regulations, a. To the greatest extent 
possible, agencies engaged in direct Federal development activities 
will follow the general procedures outlined under Part I of Attach- 
ment A in affording State and areawide clearinghouses opportunities 
to review and comment on plans and developments. 

b. Where legislative or executive constraints or related circum- 
stances do not permit following such procedures, agency procedures 
and regulations will set forth for each program at a minimum : 

(1) The point in project planning at which clearinghouses will be 
contacted ; 

(2) The minimum time clearinghouses will be afforded to review the 
proposed project; 

(3) The minimum information to be provided to the clearinghouses ; 
and 

(4) Procedures for notifying clearinghouses on actions taken on- 
such project (implementation, timing, postponement, abandonment) 



923 



OFFICiE OP MANAGEMENT AND BUDGET 

and explaining actions taken contrary to clearinghouse recommenda- 
tions. 

c. The Office of Management and Budget will consider other pro- 
cedures such as memoranda of agreement between Federal installa- 
tions and clearinghouses for coordinating Federal and civilian 
planning, that are designed to achieve the objectives of this Part. 

d. All proposed agency procedures and regulations to implement 
this Part will be published in the Federal Register pursuant to 
paragraph 7 of the Circular. 0MB will assist and cooperate with 
agencies in developing such procedures and regulations. 

PART m : STATE PLANS 

1. Purpose. The purpose of this Part is to provide Federal agencies 
with information about the relationship to State or areawide compre- 
hensive planning of State plans which are required or form the basis 
for funding under various Federal programs. 

2. State plana. To the extent not presently required by statute or 
administrative regulation, Federal agencies admmistering programs 
requiring by statute or regulation a State plan as a condition of 
assistance under such programs will require that the Governor, or his 
delegated agency, be given the opportunity to comment on the rela- 
tionship of such State plan to comprehensive and other State plans 
and programs and to those of affected areawide or local jurisdictions. 
The Governor is urged to involve areawide clearinghouses in the 
review of State plans, particularly where such plans have specific 
applicability to or affect areawide or local plans and programs. 

a. The Governor will be afforded a period of 45 days in which to 
make such comments, and any such comments will be transmitted 
with the plan. 

b. A ''State plan" under this Part is defined to include any required 
supporting planning reports or documentation that indicate the pro- 
grams, projects, and activities for which Federal funds will be utilized. 
Such reports or documentation will also be submitted for review at 
the request of the Governor or the agency he has designated to perform 
review under this Part. 

c. Programs requiring State plans are listed in Appendix II of the 
Catalog of Federal DoTnestic Assistance, 

PART IV : COORDINATION OF PLANNING IN MULTIJURISDICTIONAL AREAS 

1. Policies and objectives. The purposes of this Part are: 
,^:T^o encouTa^ge and facilitate State and local initiative and respon- 
sibility m developing organizational and procedural arrangements for 
coordinating comprehensive and functional planning activities. 

b. To eliminate overlap, duplication, and competition in areawide 
planning activities assisted or required under Federal programs and 
to encourage the most effective use of State and local resources 
available for planning. 

c. To minimize inconsistency among Federal administrative and 
approval requirements placed on areawide planning activities. 

J^'uv T.?^^"^^^® ^^^ ^^^^^^ ^^ exercise leadership in delineating and 
establishmg a system of planning and development districts or regions 



924 



OmCE OF MANA<}EMENT AND BUDGET 

in each State, which can provide a consistent geographic base for the 
planning and coordination of Federal, State, and local development 
programs. . . 

e. To encourage Federal agencies administering programs assistmg 
or requiring areawide planning to utilize agencies that have been 
designated to perform areawide comprehensive planning in planning 
and development districts or regions established pursuant to subpara- 
graph d above (generally, areawide clearinghouses designated pur- 
suant to Part I of Attachment A of this Circular) to carry out or 
coordinate planning under such programs. In the case of interstate 
metropolitan areas, agencies designated as metropolitan areawide 
clearinghouses should be utilized to the extent possible to carry out 
or coordinate Federally assisted or required areawide planning.^ 

2. Common or consistent planning and development districts or 
regions, a. Prior to the designation or redesignation (or approval 
thereof) of any planning and development district or region under 
any Federal program, Federal agency procedures will provide a period 
of 30 days for the Governor (s) of the State (s) in which the district 
or region will be located to review the boundaries thereof and comment 
upon its relationship to planning and development districts or regions 
established by the State. Where the State has established such planning 
and development districts, the boundaries of areas designated under 
Federal programs will conform to them unless there is clear justifica- 
tion for not doing so. 

b. Where the State has not established planning and development 
districts or regions which provide a basis for evaluation of the bound- 
aries of the area proposed for designation, major units of general local 
government and the appropriate Federal Regional Council in such 
areas will also be consulted prior to designation of the area to assure 
consistency with districts established under inter-local agreement and 
under related Federal programs. 

c. The Office of Management and Budget will be notified through 
the appropriate Federal Regional Council by Federal agencies of any 
proposed designation and will be informed of such designation when 
it is made, including such justifications as may be required under 
subparagraph a above. 

3. Common and consistent planning hoses and coordination of related 
activities in multijurisdictional areas. Each agency will develop proce- 
dures and requirements for applications for multijurisdictional plan- 
ning and development assistance under appropriate programs to assure 
the fullest consistency and coordination with related planning and 
development being carried on by the areawide comprehensive planning 
agency or clearinghouse designated under Part I of this Circular in 
the multijurisdictional area. 

Such procedures shall include provision for submission to the fund- 
ing agency by any applicant for multijurisdictional planning assist- 
ance, if the applicant is other than an areawide comprehensive plan- 
ning agency referred to in paragraph le of this Part, of a memorandum 
of agreement between the applicant and such areawide comprehensive 
planning agency covering the means by which their planning activities 
will be coordinated. The agreement will cover but need not be limited 
to the following matters : 



925 



OFFICE OF MANAGEMENT AND BUDGET 

a. Identification of relationships between the planning proposed by 
the applicant and that of the areawide agency and of similar or related 
fictivities that will require coordination ; 

b. The organizational and procedural arrangements for coordinating 
such activities, such as : Overlapping board membership, procedures 
for joint reviews of projected activities and policies, information 
■exchange, etc.; 

c. Cooperative arrangements for sharing planning resources (funds, 
personnel, facilities, and services) ; 

d. Agreed upon base data, statistics, and projections (social, eco- 
nomic, demographic) on the basis of which planning in the area will 
proceed. 

"^Vhere an applicant has been unable to effectuate such an agreement, 
he will submit a statement indicating the efforts he has made to secure 
agreement and the issues that have prevented it. In such case, the 
funding agency, in consultation with the Federal Regional Council 
and the State clearinghouse designated under Part I, will undertake, 
within a 30 days period after receipt of the application, resolution of 
the issues before approving the application, if it is otherwise in good 
order. 

4. Joint funding. Where it will enhance tlie quality, comprehensive 
scope, and coordination of planning in multi jurisdictional areas. Fed- 
eral agencies will, to the extent practicable, provide for joint funding 
of planning activities being carried on therein. 

5. Coordination of agency procedures and regulations. With respect 
to the steps called for in paragraphs 2 and 3 of this Part, departments 
and agencies will develop for relevant programs appropriate draft 
procedures and regulations which will be published in the Federal 
Register pursuant to paragraph T of this Circular. Copies of such 
drafts will be furnished to the Director of the Office of Management 
and Budget and to the heads of departments and agencies administer- 
ing related programs. The Office, in consultation with the agencies, 
will review the draft procedures and regulations to assure the 
maximum obtainable consistency among them. 

PART V: DEFINITIONS 

Term used in this Circular will have following meanings : 

1. Federal agency — any department, agency, or instrumentality in 
the executive branch of the Government and any wholly owned 
Government corporation. 

2. State — any of the several States of the United States, the District 
of Columbia, Puerto Rico, any territory or possession of the United 
States, or any agency or instrumentality of a State, but does not include 
the governments of the political subdivisions of the State. 

3. Unit of general local government — any city, county, town, parish, 
village, or other general purpose political subdivision of a State. 

4. Special purpose v/nit of local government — any special district, 
public purpose corporation, or other strictly limited purpose political 
subdivision of a State, but shall not include a school district. 

5. Federal assistance^ Federal financial assistance^ Federal assist- 
ance program^ or federally assisted programs — programs that pro- 
vide assistance through grant or contractual arrangements. They 



926 



OFFICE OF MANAGEMENT AND BUDGET 

include technical assistance programs, or programs providing as- 
sistance in the form of loans, loan guarantees, ormmr^^ceTh^^^^ 
does not include any annual payment by the Lnited States to the 
District of Columbia authorized by article \ I of the District ot 
Colmnbia Revenue Act of 1947 (D.C. Code sec. 4^-2D01a and 

^ ~l\'undinq agency. The Federal agency or in the case of certain 
formula grant programs, the State agency which is responsible tor 
final approval of applications for assistance. ^ -, , 

7. Comvrehensive planning, to the extent directly related to area 
needs or needs of a unit of general local government, including the 
following: . 

a. Preparation, as a guide for governmental policies and action, ot 
general plans with respect to : 

(1) Pattern and intensitv of land use. 

(2) Provision of public facilities (mcludmg transportation facili- 
ties) and other government services. 

(3) Effective development and utilization of human and natural 
resources. 

b. Preparation of long range physical and fiscal plans for such 

action. 

c. Programming of capital improvements and other major expendi- 
tures, based on a determination of related urgency, together with de- 
finitive financing plans for such expenditures in the earlier years of 
the program. 

d. Coordination of all related plans and activities of the State and 
local governments and agencies concerned. 

e. Preparation of regulatory and administrative measures in support 
of the foregoing. 

8. Metro]}oJitan area — a standard metropolitan statistical area as 
established by the Oilice of Management and Budget, subject, however, 
to such modifications and extensions as the Ofiice of Management and 
Budget may determine to be appropriate for the purposes of section 
204 of the Demonstration Cities and Metropolitan Development Act 
of 1966, and these Regulatioiis. 

9. Areawlde — Comprising, in metropolitan areas, the whole of con- 
tiguous urban and urbanizing areas ; and any nonmetropolitan areas, 
contiguous counties or other multi jurisdictional areas having com- 
mon or related social, economic, or physical characteristics indicating 
a community of developmental interests; or, in either, the area in- 
cluded in a substate district designated pursuant to paragraph Id, 
Part IV, Attachment A of this Circular. 

10. Planning and development clearinghause or clearinghouse 
includes : 

a. ^^ State clearinghouse''' — an agency of the State Government desig- 
nated by the Governor or by State law to carry out the requirements 
of Part I of Attachment A of this Circular. 

b. ''''Areawide clearinghause-'' — (X) In nonmetropolitan areas a com- 
prehensive ^ planning agency designated by the Governor (or 
Governors in the case of regions extending into more than one State) 
or by State law to carry out requirements of this Circular ; or 

(2) In metropolitan areas an areawide agency that has been recog- 
nized by the Office of Management and Budget as an appropriate 



927 



OFFICE OF MANAGEMENT AND BUDGET 

agency to perform review functions under section 204 of the Demon- 
stration Cities and Metropolitan Development Act of 1966, Title IV 
of the Intergovernmental Cooperation Act of 1968, and this Circular. 

11. MulfijuTisdietional area — any geographical area comprising, en- 
compassing, or extending into more than one unit of general local 
government. 

12. Planning amd development district or region — a multi jurisdic- 
tional area that has been formally designated or recognized as an ap- 
propriate area for planning under State law or Federal program 
requirements. 

13. Direct Federal development — planning and construction of 
public works, physical facilities, and installations or land and real 
property development (including the acquisition, use, and disposal of 
real property) undertaken by or for the use of the Federal Govern- 
ment or any of its agencies ; or the leasing of real property for Federal 
use where the use or intensity of use of such property will be sub- 
stantially altered. 

Attachment B — Circui^ar No. A-95 Revised 

Section 204 of the Demonstration Cities and Metropolitan Develop- 
ment Act of 1966 as amended (80 Stat, 1263, 82 Stat. 208) 

"Sec. 204. (a) All applications made after June 30, 1967, for Federal 
loans or grants to assist in carrying out open-space land projects or for 
planning or construction of hospitals, airports, libraries, water supply 
and distribution facilities, sewage facilities and waste treatment 
works, highway, transportation facilities, law enforcement facilities, 
and water development and land conservation projects within any 
metropolitan area shall be submitted for review — 

"(1) to any areawide agency which is designated to perform metro- 
politan or regional planning for the area within which the assistance is 
to be used, and which is, to the greatest practicable extent, composed 
of or responsible to the elected officials of a unit of areawide govern- 
ment or of the units of general local government within whose juris- 
diction such agency is authorized to engage in such planning, and 

"(2) if made by a special purpose unit of local government, to the 
unit or units of general local government with authority to operate 
in the area within which the project is to be located. 

"(b) (1) Except as provided in paragraph (2) of this subsection, 
each application shall be accompanied (A) by the comments and 
recommendation with respect to the project involved by the areawide 
agency and governing bodies of the units of general local govern- 
ment to which the application has been submitted for review, and (B) 
by a statement by the applicant that such comments and recom- 
mendations have been considered prior to formal submission of the 
application. Such comments shall include information concerning the 
extent to which the project is consistent with comprehensive planning 
developed or in the process of development for the metropolitan area 
or the unit of general local government, as the case may be, and the 
extent to which such project contributes to the fulfillment of such 
planning. The comments and recommendations and the statement re- 
ferred to in this paragraph shall, except in the case referred to in 
paragraph (2) of this subsection, be reviewed by the agency of the 

928 



OFFICE OF MANAGEMENT AND BUDGET 

Federal Grovernment to which such application is submitted for the 
sole purpose of assisting it in determining whether the application is 
in accordance with the provisions of Federal law which govern the 
making of the loans or grants. 

"(2) An application for a Federal loan or grant need not be ac- 
companied by the comments and recommendations and the statements 
referred to in paragraph b(l) of this subsection, if the applicant 
certifies that a plan or description of the project, meeting the require- 
ments of such rules and regulations as may be prescribed under sub- 
section (c), or such application, has lain before an appropriate area- 
wide agency or instrumentality or unit of general local government 
for a period of sixty days without comments or recommendations 
thereon being made by such agency or instrumentality. 

'•(3) The requirements of paragraphs (1) and (2) shall also apply 
to any amendment of the application which, in light of the purposes of 
this title, involves a major change in the project covered by the ap- 
plication prior to such amendment. 

"(c) The Bureau of the Budget, or such other agency as may be 
designated by the President, is hereby authorized to prescribe such 
rules and regulations as are deemed appropriate for the effective 
administration of this section." 

TITLE IV or THE INTERGOVERNMENTAL COOPERATION ACT OP 1968 

(82 STAT. 1103) 

'•'Title IV — Coordinated Intergovernmental Policy and Adminis- 
tration of Development Assistan^ce Program^^^ 

^'Declaration of development assistance policy'''' 

"Sec. 401. (a) The economic and social development of the Nation 
and the achievement of satisfactory levels of living depend upon the 
sound and orderly development of all areas, both urban and rural. 
Moreover, in a time of rapid urbanization, the sound and orderly de- 
velopment of urban communities depends to a large degree upon the 
social and economic health and the sound development of small com- 
munities and rural areas. The President shall, therefore, establish rules 
and regulations governing the formulation, evaluation, and review of 
Federal programs and projects having a significant impact on area 
and community development including programs providing Federal 
a^istance to the States and localities, to the end that th^j shall most 
effectively serve these basic objectives. Such rules and regulations 
shall provide for full consideration of the concurrent achievement of 
the following specific objectives and, to the extent authorized by law, 
rea^ned choices shall be made between such objectives when they 
conflict : '^ 

"(1) Appropriate land uses for housing, commercial, industrial, 
governmental, institutional, and other purposes ; 

" (2) Wise development and conservation of natural resources, in- 
cluding land, water, mmerals, wildlife, and others; 

(3) Balanced transportation systems, including highway, air, 
water, pedestrian, ma^s transit, and other modes for the movement of 
people and goods ; 

' (4) Adequate outdoor recreation and open space ; 



929 



u 



OFFICE OF MANAGEMENT AND BUDGET 

"(5) Protection of areas of unique natural beauty, historical and 

scientific interest ; . . . 

"(6) Properly planned community facilities, mcludmg utilities for 
the supply of power, waiter, and communications, for the safe dis- 
posal of wastes, and for other purposes ; and 
" (7) Concern for high standards of design. 

" (b) All viewpoints — national, regional, State and local — shall, to 
the extent possible, be fully considered and taken into account in plan- 
ning Federal or federally assisted development programs and projects. 
State and local government objectives, together with the objectives 
of regional organizations shall be considered and evaluated with- 
in a framework of national public objectives, as expressed in Federal 
law, and available projections of future national conditions and ne^ds 
of regions. States, and localities shall be considered in plan formula- 
tion, evaluation, and review. 

"(c) To the maximum extent possible, consistent with national ob- 
jectives, all Federal aid for development purposes shall be consistent 
with and further the objectives of State, regional, and local compre- 
hensive planning. Consideration shall be given to all developmental 
aspects of our total national community, including but not limited to 
housing, transportation, economic development, na4:ural and human 
resources development, community facilities, and the general improve- 
ment of living environments. 

"(d) Each Federal department and agency administering a develop- 
ment assistance program shall, to the maximum extent practicable^ 
consult with and seek advice from all other significantly affected Fed- 
eral departments and agencies in an effort to assure fully coordinated 
programs. 

"(e) Insofar as possible, systematic planning required by individual 
Federal programs (such as highway construction, urban renewal, and 
open space) shall be coordinated with and, to the extent authorized by 
law, made part of comprehensive local and areawide development 
planning." 

''^Favoring units of general local government'^'* 

"Sec. 402. Where Federal law provides that both special-purpose 
units of local government and units of general local government are 
eligible to receive loans or grants-in-aid, heads of Federal departments 
and agencies shall, in the absence of substantial reasons to the con- 
trary, make such loans or grants-in-aid to imits of general local gov- 
ernment rather than to special-purpose units of local government." 
^'Rules amd regulations^'* 

"Sec. 403. The Bureau of the Budget, or such other agency as mav 
be designated by the President, is hereby authorized to prescribe such 
rules and regulations as are deemed appropriate for the effective ad- 
ministration of this title." 

Attachment C— Circular No. A-95 Revised 

SECTION 102(2) (C) OF THE NATIONAL ENVIRONMENTAL POLICY ACT OF 
1969 (83 STAT. 853) 

"Sec. 102. The Congress authorizes and directs that, to the fullest 
extent possible: (1) the poHcies, regulations, and public laws of the 

930 



OFFICE OF MANAGEMENT AND BUDGET 

United States shall be interpreted and administered in accordance 
with the policies set forth in this Act, and (2) all agencies of the Fed- 
eral Government shall — * * * 

"(C) include in every recommendation or report on proposals for 
legislation and other major Federal actions siofnificantly affecting the 
quality of the human environment, a detailed statement by the re- 
sponsible official on — 

" ( i ) the environmental impact of the proposed action. 

"(ii) any adverse environmental effects which cannot be avoided 
should the proposal be implemented, 

" (iii) alternatives to the proposed action, 

"(iv) the relationship between local short-term use of man's en- 
vironment and the maintenance and enhancement of long-term pro- 
ductivity, and 

"(v) any irreversible or in-etrievable commitments of resources 
^hich would be involved in the proposed aetion should it be imple- 
mented. 

"Prior to making any detailed statement, the responsible Federal 
official shall consult with and obtain the comments of any Federal 
agency which has jurisdiction by law or special expertise with respect 
to any environmental impact involved. Copies of such statement and 
the comments and views of the appropriate Federal, State, and local 
agencies, which are authorized to develop and enforce environmental 
standards, shall be made available to the President, the Council on 
Environmental Quality and to the public as provided by section 552 
of Title 5, United States Code, and shall accompany the proposal 
through the existing agency review processes ; 



* * * 55 



Attachment D — Cercular No. A-95 Ee\t:sed 



1. Programs listed below are referenced several ways, due to transi- 
tional phases in program development, funding status, etc. Generally, 
citations arc to programs as they are listed in the June, 1975 Catalog of 
Federal Domestic Assistance. For cercain new legislation, Catalog 
citations have not yet been developed. In such cases, references are to 
Public Law number and section, '\^^len no funding is available for a 
program, it is not generally listed in the Catalog or this Attachment; 
but if funding becomes available for a program previously covered, it 
continues to be covered unless specifically exempted by O^IB. The 
Catalog is issued annually and revised periodically during the year. 
Every effort will be made to keep Appendix I and Attachment D cur- 
rent. Reference should always be made to the one bearing the latest 
issue date. (However, the update to the 1975 Catalog will not reflect 
all the changes herein. Therefore, this list should be referenced until 
issuance of the 1976 Catalog.) 

Asterisks indicate certain State formula grant programs requiring 
State plans which are also covered under Part III. When listed under 
Part I, reference is to applications for subgrants under the State al- 
location, not to the State's application for its allocation under the for- 
mula grant which is reviewable under Part III. 

2. Heads of Federal departments and agencies may, with the con- 
currence of the OflSce of Management and Budget, exclude certain 



931 



OFFICE OF MANAGEMENT AND BUDGET 

categories of projects or activities under listed programs from the re- 
quirements of Attachment A, Part I. (Also see Part I, paragraph 8.) 
3. Covered programs : 

Department of AgrUmlture 

10.405 Farm Labor Housing Loans and Grants. 

10.409 Irrigation, Drainage, and Other Soil and Water Conservation Loans. (Ex- 

ception : Loans to grazing associations to develop additional pasturage 
and loans for purchase of equipment ) 

10.410 Low to Moderate Income Housing Loans. 

10.411 Rural Housing Site Loans. 

10.414 Resource Conservation and Development Loana. 

10.415 Rural Rental Housing Loans. 

10.418 Water and Waste Disposal Systems for Rural Communities. 

10.419 Watershed Protection and Flood Prevention Loans. 

10.420 Rural Self -Help Housing Technical Assistance. 

10.422 Business and Industrial Development Loans. (Exception : Loans to rural 

small businesses having no significant impact outside community in 
which located.) 

10.423 Community Facilities Loans. 

10.424 Industrial Development Grants. 

10.658 Cooperative Forest Insect and Disease CJontroL 

10.901 Resources Conservation and Development (Exception: Small projects 
costing under $7500 for erosion and sediment control and land stabiliza- 
tion and for rehabilitation and consolidation of existing irrigation 
systems.) 

10.904 Watershed Protection and Flood Prevention. 

Department of Commerce 

11.300 Economic Development — Grants and Loans for Public Works and De- 
velopment Facilities. 

11.302 Economic Development — Support for Planning Organizations. 

11.303 Economic Development — ^Technical Assistance. 

11.304 Economic Development — ^Public Works Impact Projects (Procedural 

variation). 

11.305 Economic Development — State and Local Economic Development 

Planning. 

11.306 Economic Development — ^District Operational Assistance. 

11.307 Economic Development — Special Economic Development and Adjustment 

Assistance Program. 

11.308 Grants to States for Supplemental and Basic Funding of Title I, II, and 

IV Activities. (Basic grants only.) 
11.405 Anadromous and Great Lakes Fisheries Development 
11,407 Commercial Fisheries Research and Development. 

11.418 Coastal Zone Management Program Development. 

11.419 Coastal Zone Management Program Administration. 

11.420 Coastal Zone Management — Estuarine Sanctuaries. 

Department of Defense 
12.101 Beach Erosion Control Projects. 

12.106 Flood Control Projects. 

12.107 Navigation Projects. 

12.108 Snagging and Clearing for Flood Control. 

Department of Healthy Education, and Welfare 

13.210* Comprehensive Public Health Services — Formula Grants. 

13.211* Crippled Children's Services. 

13.217* Family Planning Projects. 

13.224 Health Services Development — Project Grants. 

13.232* Maternal and Child Health Services. 

13.235 Drug Abuse Community Service Programs. 

13.237 Mental Health — Hospital Improvement Grants. 

13.240 Mental Health — Community Mental Health Centers. 

13.246 Migrant Health Grants. 

13.251 Alcohol— Community Service Programs. 



932 



OFFICE OF MANAGEMENT AND BUDGET 

13.252 Alcohol Demonstration Programs. 

13.2.54 Drug Abuse Demonstration Programs. 

13.256 Office for Health Maintenance Organization (HMOS). 

13.258* National Health Service Corps. 

13.259 Mental Health — Children's Services. 

13.260 Family Planning Services — Training Grants. 

13.261 Family Health Centers. 

13.266 Childhood Lead-Based Paint Poisoning Control. 

13.267 Urban Rat Control. 

13.268 Disease Control — Project Grants. 
13.275 Drug Abuse Education Programs. 
13.284 Emergency Medical Services. 

13.286 Limitation on Federal Participation for Capital Expenditures. 

13.340 Health Professions Teaching Facilities — Construction Grants. 

13.369 Nursing School Construction — Loan Guarantees and Interest Subsidies. 

13.378 Health Professions Teaching Facilities — Loan Guarantees and Interest 

Subsidies. 
13.392 Cancer — Construction. 
13.400* Adult Education— Grants to States. 
13.401 Adult Education — Special Projects. 
13.408* Construction of Public Libraries. 

13.421 Educational Personnel Training Grants — Career Opportunities. 
13.427 Educationally Deprived Children — Handicapped. 
13.428* Educationally Deprived Children — Local Educational Agencies. 
13.429* Educationally Deprived Children — Migrants. 
13.433 Follow Through. 

13.464* Library Services — Grants For Public Libraries. 
13.477 School Assistance in Federally Affected Areas — Construction. 
13.493* Vocational Education — Basic Grants to States. 
13.494* Vocational Education — Consumer and Homemaking. 
33.495* Vocational Education — Cooperative Education. 
13.499* Vocational Education — Special Needs. 
13.501* Vocational Education — Work Study. 
13.502* Vocational Education — Innovation. 
13.516 Supplementary Educational Centers and Services — Special Programs 

and Projects. 
13.519* Supplementary Educational Centers and Services, Guidance, CounsellniT, 

and Testing. 
13..520 Special Programs for Children with Specific Learning Disabilities. 
13.522 Environmental Education. 
13.543 Educational Opportunity Centers. 
13.570* Librarie.^ and Learning Resources. 
13.600 Child Development— Head Start. 
13.612 Native American Programs. 
13.623 Runaway Youth. 

13.624* Rehabilitation Services and Facilities — Basic Support. 
13.626 Rehabilitation Services and Facilities — Special Projects. 
13.628 Child Development — Child Abuse and Neglect Prevention and Treatment 
13.030* Developmental Disabilities — Basic Support. 
13.631 Developmental Disabilities — Special Projects. 
13.633* Special Programs for the Aging — State Agency Activities and Area 

Planning and Social Services Programs. 
13.634 Aging Programs Title III. Section 308, Model Projects. 
13.635* Special Programs for the Aging — Nutrition Program for the Elderly. 
16.636 Programs for the Aging — Research and Demonstration. 
16.637* Programs for the Aging — Training. 
P.L. 93-318 : (Section 161) Construction of Academic Facilities. 
P.L. 93-641: (Section 1516) Planning Grants to Health Systems Agencies: 
(Section 1601 et seq.. Title XVI Public Health Service Act) Assist- 
ance for modernization, construction or conversion of medical facil- 
ities. These programs will replace Catalog 13.206, 13.220. 13 249 and 
13.253. 

Department of Housing and Vrlan Development 

14.001 Flood Insurance (Applications for community eligibility). 
14.103 Interest Reduction Payments — Rental and Cooperative Housing for 
Lower Income Families. 

933 



OFFICE OF MANAGEMENT AND BUDGET 

14.105 Interest Subsidy— Homes for Lower Income Families. 

14.112 Mortgage Insurance — Construction of Rehabilitation or CJondominium 
Projects. 

14.115 Mortgage Insurance — Development of Sales-Type Cooperative Projects. 

14.116 Mortgage Insurance— Group Practice Facilities. 

14.117 Mortgage Insurance — Homes. 

14.118 Mortgage Insurance — Homes for Certified Veterans. 

14.119 Mortgage Insurance — Homes for Disaster Victims. 

14.120 Mortgage Insurance — Homes for Low and Moderate Income Families. 

14.121 Mortgage Insurance — Homes in Outlying Areas. 

14.122 Mortgage Insurance — Homes in Urban Renewal Areas. 

14.124 Mortgage Insurance — Investor Sponsored Cooperative Housing. 

14.125 Mortgage Insurance — Land Development and New Communities. 

14.126 Mortgage Insurance — Management-Type Cooperative Projects. 

14.127 Mortgage Insurance — Mobile Home Parks. 

14.128 Mortgage Insurance — Hospitals. 

14.129 Mortgage Insurance — Nursing Homes and Related Care Facilities. 

14.134 Mortgage Insurance — Rental Housing. 

14.135 Mortgage Insurance — Rental Housing for Moderate Income Families. 

14.137 Mortgage Insurance — Rental Housing for Low and Moderate Income 

Families, Market Interest Rate. 

14.138 Mortgage Insurance — Rental Housing for the Elderly. 

14.139 Mortgage Insurance — Rental Housing in Urban Renewal Areas. 
14.141 Nonprofit Housing Sponsor Loans — Planning Projects for Low and 

Moderate Income Families. 
14.146 Public Housing — Acquisition. (Turnkey and Conventional Production 

Methods.) (New construction only.) 
14.149 Rent Supplements — Rental Housing for Lower Income Families. 
14.154 Mortgage Insurance — Experimental Rental Housing. 
14.156 Lower Income Housing Assistance Program. 
14.203 Comprehensive Planning Assistance. 
14.207 New Communities — Loan Guarantees. 

14.218 Community Development Block Grants — Entitlement Grants. 

14.219 Community Development Block Grants — Discretionary Grants. 
14.702 State Disaster Preparedness Grants. 

Department of the Interior 

15.350 Coal Mine Health and Safety Grants. 

15.400* Outdoor Recreation — Acquisition, Development and Planning. 

15.501 Irrigation Distribution System Loans. 

15.503 Small Reclamation Projects. 

15.600 Anadromous Fish Conservation. 

15.605 Fish Restoration. 

15.611 Wildlife Restoration. 

15.904 Historic Preservation. 

Department of Justice 

16.500 Law Enforcement Assistance — Comprehensive Planning Grants 

16.501 Law Enforcement Assistance — Discretionary Grants. 

16.502* Law Enforcement Assistance— Improving and Strengthening Law En- 
forcement and Criminal Justice. & »» *-ui 

16.515 Criminal Justice Systems Development. 

16.516 Law Enforcement Assistance— Juvenile Justice and Delinauencv Pta. 

vention— Allocation to States. ■L'eiinquency ±^e- 

16.517 Law Enforcement Assistance Administration— JJPD Special Emnhasia 

Prevention and Treatment. y^a-oM 

Department of Labor 
17.211 Job Corps. 

17.226 Work Incentives Program (WIN). 
17.230 Farm Workers. (Procedural variation.) 
17.232* Comprehensive Employment and Training Programs. 

Department of Transportation 

20.102 Airport Development Aid Program. 

20.103 Airport Planning Grant Program. 



934 



OFFICE OF MANAGEMENT AND BUDGET 

20.205 Highway Research, Planning, and Constmction. 

20.214 Highway Beautification — Control of Outdoor Advertising, Control of 
Junkyards, Landscaping and Scenic Enhancement. 

20.500 Urban Mass Transportation Capital Improvement Grants. (Planning 

and construction only.) 

20.501 Urban Mass Transportation Capital Improvement Loans. (Planning 

and construction only.) 

20.505 Urban Mass Transportation Technical Studies Grants. (Planning and 

construction only.) 

20.506 Urban Mass Transportation Demonstration Grants. 

20.507 Urban Mass Transportation Capital and Operating Assistance Formula 

Grants. 

Appalachian Regional Commission 

23.003 Appalachian Development Highway System. 

23.004 Appalachian Health Demonstration. 

23.005 Appalachian Housing Planning Loan Fund. 
23.008 Appalachian Local Access Roads. 

23.010 Appalachian Mine Area Restoration. 

23.011 Appalachian State Research, Technical Assistance, and Demonstration 

Projects. 

23.012 Appalachian Vocational Education Facilities and Operations. 

23.013 Appalachian Child Development. 

23.014 Appalachian Housing Site Development and Ofl3ce State Improvement 

Grants. 
23.016 Appalachian Vocational Education and Technical Education Demonstra- 
tion Grants. 

(Note. — Except for 23.001, administration of these grants is not in the Com- 
mission but in the appropriate program agency — e.g., 23.003 is handled by DOT. 
For 23.002, Appalachian Supplements to Federal Grants-in-aid, which can pro- 
vide all or any portion of the Federal contribution under certain defined grant- 
in-aid programs, coverage under Part I is determined by the provisions appli- 
cable to the basic grant-in-aid program. For 28.003, 38.003, 48.003, 52.003, and 
63.003 — Regional Commission Supplements to Federal Grants-in-aid — the 
rule would apply.) 

Coastal Plains Regional Commission 

28.002 Coastal Plains Technical and Planning Assistance. 

(See note under Appalachian Regional Commission programs.) 

Four Comers Regional Commission 

38.002 Four Comers Technical and Planning Assistance. 

(See note under Appalachian Regional Commission programs.) 

National Science Foundation 

47.036 Intergovernmental Science. 

New England Regional Commission 

48.002 New England Technical and Planning Assistance. 

(See note under Appalachian Regional Commission programs.) 

Community Sermces Administration 

49.002 Community Action. 

49.010 Older Persons Opportunities and Services. 

49.011 Community Economic Development. 

OzarJcs Regional Commission 

52.002 Ozarks Technical and Planning Assistance. 

(See note under Appalachian Regional Commission programs.) 

Upper Great Lakes Regional Commission 

63.002 Upper Great Lakes Technical and Planning Assistance. 
(See note under Appalachian Regional Commission programs.) 



935 

45-705 0-79-6 



OFFICE OF MANAGEMENT AND BUDGET 

Veterans Admmistration 

64.005 Grants to States for Construction of State Nursing Home Care Facilities. 
64.017 Grants to States for Remodeling of State Home Hospital/Domiciliary 
Facilities. 

64.020 Assistance in the Establishment of New State Medical Schools. 

64.021 Grants to Affiliated Medical Schools — Assistance to Health Manpower 

Training Institutes. 
64.114 Veterans Housing — Guaranteed and Insured Loans (GI Home Loans). 

Water Resources Council 

65.001 Water Resources Planning. 

Environmental Protection Agency 

66.001 Air Pollution Control Program Grants. 

66.005 Air Pollution Survey and Demonstration Grants. 

66.027 Solid Waste Planning Grants. 

66.028 Solid Waste Demonstration Grants. 

66.418 Construction Grants for Wastewater Treatment Works. 

66.419 Water Pollution Control — State and Interstate Program Grants. 
66.426 Water Pollution Control — Area wide Waste Treatment Management 

Planning Grants. 

"66.432 Grants for State Public Water System Subdivision Programs. 

t66.433 Grants for Underground Injection Control Programs. 

66.505 Water Pollution Control Demonstration Grants. 

'66.506 Safe Drinking Water Research and Demonstration Grants. (Demon- 
stration only). 

•66.600 Environmental Protection — Consolidated Program Grants. 

>66.602 Environmental Protection — Consolidated Special Purpose Grants, 

Action 

72.001 Foster Grandparents. 

72.002 Retired Senior Volunteer Program. 
72.008 The Senior Companion Program. 

Old Western Regional Commission 

75.002 Old West Technical and Planning Assistance. 

Pacific Northwest Regional Commission 

76.002 Pacific Northwest Technical and Planning Assistance Regulations. 



936 



OFFICE OF MANAGEMENT AND BUDGET § 2 

IMPROVING GOVERNMENT REGULATIONS 

Executive Order 12044^ 

[43 Fed. Reg. 12661] 

As President of the United States of America, I direct each Execu- 
tive Agency to adopt procedures to improve existing and future 
regulations. 

Section 1. Policy. Regulations shall be as simple and clear as pos- 
sible. They shall achieve legislative goals effectively and efficiently. 
They shall not impose unnecessary burdens on the economy, on indi- 
viduals, on public or private organizations, or on State and local 
governments. 

To achieve these objectives, regulations shall be developed through 
a process which ensures that : 

(a) the need for and purposes of the regulation are clearly 
established ; 

(b) heads of agencies and policy officials exercise effective over- 

(c) opportunity exists for early participation and comment by 
other Federal agencies. State and local governments, businesses, 
organizations and individual members of the public ; 

(d) meaningful alternatives are considered and analyzed before 
the regulation is issued ; and 

(e) compliance costs, paperwork and other burdens on the pub- 
lic are minimized. 

Sec. 2. Reform of the Process for Developing Significant Regula- 
tions. Agencies shall review and revise their procedures for developing 
regulations to be consistent with the policies of this Order and in a 
manner that minimizes paperwork. 

Agencies' procedures should fit their own needs but, at a minimum, 
these procedures shall include the following : 

(a ) Semiannual Agenda of Regulations. To give the public ade- 
quate notice, agencies shall publish at least semiannually an agenda 
of significant regulations under development or review. On the 
first Monday in Octolx^-, each agency shall publish in the Federal 
Register a schedule showing the times during the coming fiscal 
year when the agency's semiannual agenda will be published. Sup- 
plements to the agenda may be published at other times during the 
year if necessary, but the semiannual agendas shall be as complete 
as possible. The head of each agency shall approve the agenda 
before it is published. 

At a minimum, each published agenda shall describe the regula- 
tions being considered by the agency, the need for and the legal 
basis for the action being taken, and the status of regulations pre- 
viously listed on the agenda. 

Each item on the agenda shall also include the name and tele- 
phone number of a knowledgeable agency official and, if possible. 



1 Supersedes and rescinds OMB Circulars No. A-85 (Consultation With the Heads of 
State and Local Government in Development of Federal Regulations) and No. A-107 
(Evaluation of the Inflationary Impact of Major Proposals for Legislation and for the 
Promulgation of Regulations or Rules). 



937 



§ 2 OFFICE OF MANAGEMENT AND BUDGET 

state whether or not a regulatory analysis will be required. The agenda 
shall also include existing reflations scheduled to be reviewed in 
accordance with Section 4 of this Order. 

(b) Agency Head Oversight. Before an agency proceeds to develop 
significant new regulations, the agency head shall have reviewed the 
issues to be considered, the alternative approaches to be explored, a 
tentative plan for obtaining public comment, and target dates for 
completion of steps in the development of the regulation. 

(c) Opportunity for Public Participation. Agencies shall give the 
public an early and meaningful opportunity to participate in the de- 
velopment of agency regulations. They shall consider a variety of 
ways to provide this opportunity, including (1) publishing an ad- 
vance notice of proposed rulemaking; (2) holding open conferences 
or public hearings; (3) sending notices of proposed regulations to 
publications likely to be read by those affected; and (4) notifying 
interested parties directly. 

Agencies shall give the public at least 60 days to comment on pro- 
posed significant regulations. In the few instances where agencies de- 
termine this is not possible, the regulation shall be accompanied by a 
brief statement of the reasons for a shorter time period. 

(d) Approval of Significant Regulations. The head of each agency, 
or the designated official with statutory responsibility, shall approve 
significant regulations before they are published for public comment 
in the Federal Register. At a minimum, this official should deter- 
mine that : 

(1) the proposed regulation is needed ; 

(2) the direct and indirect effects of the regulation have been ade- 
quately considered ; 

(3) alternative approaches have been considered and the least bur- 
densome of the acceptable alternatives has been chosen ; 

(4) public comments have been considered and an adequate response 
has been prepared ; 

(5) the regulation is written in plain English and is understand- 
able to those who must comply with it ; 

(6) an estimate has been made of the new reporting burdens or rec- 
ordkeeping requirements necessary for compliance with the regula- 
tion; 

(7) the name, address and telephone number of a knowledgeable 
agency official is included in the publication ; and 

(8) a plan for evaluating the regulation after its issuance has been 
developed. 

(e) Criteria for Determininq Significant Regulations. Agencies shall 
establish criteria for identifying which regulations are significant. 
Agencies shall consider among other things: (1) the type and num- 
ber of individuals, businesses, organizations. State and local govern- 
ments affected; (2) the compliance and reporting requirements likely 
to be involved; (3) direct and indirect effects of the regulation in- 
cluding the effect on competition; and (4) the relationship of the 
regulations to those of other programs and agencies. Regulations 
that do not meet an agency's criteria for determining significance 
shall be accompanied by a statement to that effect at the time the regu- 
lation is proposed. 



938 



OFFICE OF MANAGEMENT AND BUDGET § 3 

Sec. 3. ReguLatory Analysis. Some of the regulations identified as 
significant may have major economic consequences for the general 
economy, for individual industries, geographical regions or levels of 
government. For these regulations, agencies shall prepare a regulatory 
analysis. Such an analysis shall involve a careful examination of al- 
ternative approaches early in the decision-making process. 

The following requirements shall govern the preparation of regu- 
latory analyses: 

(a) Criteria. Agency heads shall establish criteria for determining 
which regulations require regulatory analyses. The criteria established 
shall : 

(1) ensure that regulatory analyses are performed for all regula- 
tions which will result in (a) an annual effect on the economy of $100 
million or more; or (b) a major increase in costs or prices for indi- 
vidual industries, levels of government or geographic regions ; and 

(2) provide that in the agency head's discretion, regulatory analy- 
sis may be completed on any proposed regulation. 

(b) Procedures. Agency heads shall establish procedures for de- 
veloping the regulatory analysis and obtaining public comment. 

(1) Each regulatory analysis shall contain a succinct statement of 
the problem ; a description of the major alternative ways of dealing 
with the problem that were considered by the agency ; an analysis of 
the economic consequences of each of these alternatives and a detailed 
explanation of the reasons for choosing one alternative over the 
others. 

(2) Agencies shall include in their public notice of proposed rules 
an explanation of the regulatory approach that has been selected or 
is favored and a short description of the other alternatives considered. 
A statement of how the public may obtain a copy of the draft regu- 
latory analysis shall also be included. 

(3) Agencies shall prepare a final regulatory analysis to be made 
available when the final regulations are published. 

Kegulatory analyses shall not be required in rulemaking proceed- 
ings pending at the time this Order is issued if an Economic Impact 
Statement has already been prepared in accordance with Executive 
Orders 11821 and 11949. 

Sec. 4. Review of Existing Regulations. Agencies shall periodically 
review their existing regulations to determine whether they are achiev- 
ing the policy goals of this Order. This review will follow the same 
procedural steps outlined for the development of new regulations. 

In selecting regulations to be reviewed, agencies shall consider such 
criteria as: 

(a) the continued need for the regulation ; 

(b) the type and number of complaints or suggestions received ; 

(c) the burdens imposed on those directly or indirectly affected by 
the regulations; 

(d) the need to simplify or clarify language ; 

(e) the need to eliminate overlapping and duplicative regulations; 
and 

(f ) the length of time since the regulation has been evaluated or 
the degree to which technology, economic conditions or other factors 
have changed in the area affected by the regulation. 



939 



§ 5 OFFICE OF MANAGEMENT AND BUDGET 

Agencies shall develop their selection criteria and a listing of pos- 
sible regulations for initial review. The criteria and listing shall be 
published for comment as required in Section 5. Subsequently, regula- 
tions selected for review shall be included in the semiannual agency 
agendas. 

Sec. 5. Implementation. 

(a) Each agency shall review its existing process for developing 
regulations and revise it as needed to comply with this Order. Within 
60 days after the issuance of the Order, each agency shall prepare a 
draft report outlining (1) a brief description of its process for de- 
veloping regulations and the changes that have been made to comply 
with this Order; (2) its proposed criteria for defining significant 
agency regulations; (3) its proposed criteria for identifying which 
regulations require regulatory analysis; and (4) its proposed criteria 
for selecting existing regulations to be reviewed and a list of regula- 
tions that the agency will consider for its initial review. This report 
shall be published in the Federal Register for public comment. A 
copy of this report shall be sent to the Office of Management and 
Budget. 

(b) After receiving public comment, agencies shall submit their re- 
vised report to the Office of Management and Budget for approval 
before final publication in the Federal Register. 

(c) The Office of Management and Budget shall assure the effec- 
tive implementation of this Order. 0MB shall report at least semi- 
annually to the President on the effectiveness of the Order and agency 
compliance with its provisions. By May 1, 1980, 0MB shall recom- 
mend to the President whether or not there is a continued need for 
the Order and any further steps or actions necessary to achieve its 
purposes. 

Sec. 6. Coverage. 

(a) As used in this Order, the term regulation means both rules 
and regulations issued by agencies including those which establish 
conditions for financial assistance. Closely related sets of regulations 
shall be considered together. 

(b) This Order does not apply to : 

(1) regulations issued in accordance with the formal rulemaking 
provisions of the Administrative Procedure Act (5 U.S.C. 556, 557) ; 

(2) regulations issued with respect to a military or foreign affairs 
function of the United States ; 

(3) matters related to agency management or personnel; 

(4) regulations related to Federal Government procurement; 

(5) regulations issued by the independent regulatory agencies; or 

(6) regulations that are issued in response to an emergency or 
which are governed by short-term statutory or judicial deadlines. 
In these cases, the agency shall publish in the Federal Register a 
statement of the reasons why it is impracticable or contrary to the" 
public interest for the agency to follow the procedures of this Order. 
Such a statement shall include the name of the policy official responsi- 
ble for this determination. 

Sec. T. This Order is intended to improve the quality of Executive 
Agency regulatory practices. It is not intended to create delay in the 
process or provide new grounds for judicial review. Nothing in this 



940 



OFFICE OF MANAGEMENT AND BUDGET §8 

Order shall be considered to supersede existing statutory obligations 
governing rulemaking. 

Sec. 8. Unless extended, this Executive Order expires on June 30, 
1980. 

Jimmy Carter. 

The WnrrE House, March 23, 1978, 



941 



OFFICE OF MANAGEMENT AND BUDGET 

[Circular No. A-97] 

August 29, 1969. 

To the heads of executive departments and establishments 
Subject : Rules and regulations permitting Federal agencies to provide 
specialized or technical services to State and local units of govern- 
ment under Title III of the Intergovernmental Cooperation Act 
of 1968 

1. Purpose. — This Circular promulgates the rules and regulations 
which the Director of the Bureau of the Budget is authorized to issue 
pursuant to section 302 of the Intergovernmental Cooperation Act of 
1968 (P.L. 90-577 ; 82 Stat. 1102) . It also provides for the coordination 
of the action of Federal departments and agencies (hereinafter re- 
ferred to as "Federal agencies") in exercising the authority contained 
in Title III of said Act as directed by the President's Memorandum 
of November 8, 1968 (33 F.R. 16487) . 

2. Background. — a. Title III of the Intergovernmental Coopera- 
tion Act of 1968 is intended to : 

(1) Encourage intergovernmental cooperation in the conduct 
of specialized or technical services and provisions of facilities 
essential to the administration of State or local governmental 
activities. 

(2) Enable State and local governments to avoid unnecessary 
duplication of special service functions. 

(3) Authorize Federal agencies which do not have such au- 
thority to provide reimbursable specialized and technical services 
to State and local governments. 

b. Title III of the Act authorizes the head of any Federal agency, 
within his discretion and upon written request from a State or political 
subdivision thereof, to provide specialized or technical services, upon 
payment to the Federal agency by the unit of government making the 
request, of salaries and all other identifiable direct or indirect costs 
of performing such services. 

c. Title III of the Act requires that : 

(1) Any services provided pursuant to Title III shall include 
only those which the Director of the Bureau of the Budget 
through rules and regulations determines Federal agencies have 
special competence to provide. 

(2) The Director's rules and regulations shall be consistent with, 
and m furtherance of, the Government's policy of relying on the 
private enterprise system to provide those services which are 
reasonably and expeditiously available through ordinary business 
channels. 

(3) All moneys received by any Federal agency in payment of 
furnishing specialized or technical services under Title III of the 
Act shall be deposited to the credit of the principal appropriation, 
from which the cost of providing such services has been paid or 
is to be charged. 



942 



OFFICE OF MANAGEMENT AND BUDGET 

(4) The head of any Federal agency shall furnish annually to 
the respective Committees on Government Operations of the 
Senate and House of Representatives a summary report on the 
scope of the services provided under Title III. 

3. Reservation of existing authoHty. — The authority contained in 
Title III of the Act and this Circular is in addition to, and does not 
supersede, any existing authority now possessed by any Federal 
agency with respect to furnishing services, whether on a reimbursable 
or nonreimbursable basis, to State or local units of government. The 
reporting and other requirements and conditions contained in this 
Circular shall not apply to services furnished under such existing 
authorities. 

4. De-finitions. — For purposes of this Circular : 

a. The term "State" means any of the several States of the United 
States, the District of Columbia, the Commonwealth of Puerto Rico, 
any territory or possession of the United States, or any agency or 
instrumentality of a State, but does not include the governments of 
the political subdivisions of a State. 

b. The terms "political subdivision" or "local government" mean a 
local unit of government, including specifically a county, municipality, 
city, town, township, or a school or other special district created by 
or pursuant to State law, or combinations thereof. 

c. "Specialized or technical services" means statistical and other 
studies and compilations, development projects, technical tests and 
evaluations, technical information, training activities, surveys, report-s, 
documents, and any other similar service functions which any Federal 
agency is especially equipped and authorized by law to perform. 

5. Policy. — Federal agencies will cooperate to the maximum extent 
possible with State and local units of government to provide such 
specialized or technical services as may be authorized. Such services 
shall generally supplement, not supplant existing services, and Fed- 
eral agencies should not provide services with full reimbursement 
under this Circular which have heretofore been furnished for less 
than full reimbursement under other authorities, unless specifically 
requested to do so. 

6. Types of services that may he provided. — a. It is hereby deter- 
mined that Federal agencies have the special competence to provide, 
and may provide the following specialized or technical services, and 
facilities related thereto, pursuant to Title III of the Intergovern- 
mental Cooperation Act of 1968 : 

(1) Any existing statistical or other studies and compilations, 
results of technical tests and evaluations, technical information, 
surveys, reports, and documents, and any such materials which 
may be developed or prepared in the future to meet the needs of 
the Federal (jovemment or to carry out the normal program 
responsibilities of the Federal agencies involved. 

(2) Preparation of statistical or other studies and compila- 
tions, technical tests and evaluations, technical information, sur- 
veys, reports, and documents, and assistance in the conduct of 
such activities and in the preparation of such materials, provided 
they are of a type similar to those which the Federal agency is 
authorized by law to conduct or prepare. 



943 



OFFICE OF MANAGEMENT AND BUDGET 

(3) Training of the type which the Federal agency is author- 
ized by law to conduct for Federal personnel and others or which 
is similar to such training. 

(4) Technical aid in the preparation of proposals for develop- 
ment and other projects for which the Federal agency provides 
grants-in-aid or other assistance, provided such aid primarily 
strengthens the ability of the recipient in developing its own 
capacity to prepare proposals. 

(5) Technical information, data processing, communications 
and personnel management systems services, and technical ad- 
vice on improving logistical and management services which the 
Federal agency normally provides for itself or others under exist- 
ing authorities. 

b. Aiiy of the above specialized or technical services provided to 
the States and their political subdivisions under existing authorities 
may also be provided under Title in of the Act and the terms of 
this Circular. 

c. If a Federal agency receives a request for specialized or technical 
services which are not covered in subparagraph a above and which it 
believes is consistent with the Act and which it has a special compe- 
tence to provide, it should forward such request to the Bureau of the 
Budget for action. Similarly, if there is doubt as to whether the serv- 
ice requested is covered by subparagraph a, the request should be for- 
warded to the Bureau of the Budget for action. 

7. Conditions under which services may he provided. — The special- 
ized or technical service provided under Title III of the Act and this 
Circular may be provided, in the discretion of the heads of Federal 
agencies, only under the following conditions : 

^ a. Such services will be provided only to the States, political sub- 
divisions thereof, and combinations or associations of such govern- 
ments or their agencies and instrumentalities. 

b. Such services will be provided only upon the written request of a 
State or political subdivision thereof. Kequests will normally be made 
by the chief executives of such entities and will be addressed to the 
head of the agency involved. 

c. Such services will not be provided unless the agency providing 
the services is providing similar services for its own use under the 
policies set forth in Bureau of the Budget Circular No. A-76, "Poli- 
cies for acquiring commercial or industrial products and services for 
Government use" (Kevised August 30, 1967). In addition, in accord- 
ance with the policies set forth in Circular No. A-76, the requesting 
entity must certify that such services cannot be produced reasonably 
and expeditiously by it through ordinary business channels. 

d. Such services will not be provided if they require any additions 
of staff or involve outlays for additional equipment or other facilities 
solely for the purpose of providing such services, except where the 
costs thereof are charged to the user of such services. Further, no staff 
additions may be made which impede the implementation of or ad- 
herence to the employment ceilings contained in Bureau of the Budget 
allowance letters. 

e. Such services will be provided only upon payment or provision 
for reimbursement to the Federal agency involved, by the unit of 



944 



OFFICE OF MANAGEMENT AND BUDGET 

toverninent making the request, of salaries and all other identifiable 
irect and indirect costs of periorming such services. For cost deter- 
mination purposes, Federal agencies will be guided by the policies 
set forth in Bureau of the Budget Circular No. A-25, "User Charges" 
(September 23, 1959). 

f. Any payments or reimbursements received by Federal agencies 
for the costs of such services will be deposited to the credit of the 
principal appropriation or other account from which the costs of 
providing the services have been paid or are to be charged. 

g. In the event a request for a service is denied, the Federal agency 
shall furnish the entity making the request vrith a statement indicat- 
ing the reasons for the denial. 

8. Reports to Congress. — The head of each Federal agency will fur- 
nish annually to the respective Committees on Government Opera- 
tions of the Senate and House of Representatives a summary report 
on the scope of the services provided under Title III of the Act and this 
Circular. Such reports will be prepared as of the end of each calendar 
year and will indicate the nature of the services rendered, the names 
of the States and political subdivisions involved, where practical, and 
the cost of the work. Services provided under other authorities are 
not to be in included in the reports. Copies of the reports will be sub- 
mitted to the Bureau of the Budget not later than March 30 of each 
year. 

9. Effective date, — This Circular is effective immediately. It super- 
sedes the "Interim Regulation under Title III of the Intergovern- 
mental Cooperation Act of 1968 (P.L. 90-577)," dated December 19, 
1968, concerning training by the U.S. Civil Service Commission. 

10. Inquiries, — Inquiries regarding this Circular may be addressed 
to the Office of Executive Management, Bureau of the Budget, Wash- 
ington, D.C. 20503, or telephone (202) 395-4934 (Government dial 
code 103-4934). 

Robert P. Mato, Director, 



945 



§301 

COASTAL ZONE MANAGEMENT 

COASTAL ZONE MANAGEMENT ACT OF 1972 

[Public Law 92-583, 86 Stat. 1280] 

AN ACT to establish a national policy and develop a national program for the 
management, beneficial use, protection, and development of the land and water 
resources of the Nation's coastal zones, and for other purposes 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assenibled. That the Act entitled 
"An Act to provide for a comprehensive, long-range, and coordinated 
national progi'am in marine science, to establish a National Council on 
Marine Resources and Engineering Development, and a Commission 
on Marine Science, Engineering and Resources, and for other pur- 
poses'*, approved June 17, 1966 (80 Stat. 203), as amended (33 U.S.C. 
1101-1124), is further amended by adding at the end thereof the fol- 
lowing new title : 

TITLE III— manage:\ient of the coastal zone 

SHORT TITLE 

Sec. 301. This title may be cited as the "Coastal Zone Management 
Act of 1972". 

COXGRESSIO^^AL FINDINGS 

Sec. 302. The Congress finds that— 

(a) There is a national interest in the effective management, bene- 
ficial use, protection, and development of the coastal zone.^ 

(b) The coastal zone is rich in a variety of natural, commercial, rec- 
reational, ecological,^ industrial, and esthetic resources of immediate 
and potential value to the present and future well-being of the Nation. 

(c) The increasing and competing demands upon the lands and 
waters of our coastal zone occasioned by population growth and eco- 
nomic development, including requirements for industry, commerce, 
residential development, recreation, extraction of mineral resources 
and fossil fuels, transportation and navigation, waste disposal, and 
harvesting of fish, shellfish, and other living marine resources, have 
resulted in the loss of living marine resources, wildlife, nutrient-rich 
areas, permanent and adverse changes to ecological systems, decreasing 
open space for public use, and shoreline erosion. 

(d) The coastal zone, and the fish, shellfish, other living marine 
resources, and wildlife therein, are ecologically fragile and conse- 
quently extremely vubierable to destruction by man's alterations. 



1 Sec. 2(1) of the Coastal Zone Management Act Amendments of 1976, Public Law 
94-370, approved July 26. 1976, 90 Stat. 1013. Inserted the word "ecologicar' immedi- 
ately after "recreational.". Sec. 2(2) (A) of such Act deleted the "semicolon" at the end 
of subsections (a), (b), (c). (d). (e), and (f) ; section 2(2) (B) of such Act deleted " : and" 
at the end of subsection (g) .and inserted a "period" at the end of each subsection. 



947 



5303 (COASTAL ZONE MANAGEMENT 

(e) Important ecological, cultural, historic, and esthetic values in 
the coastal zone which are essential to the well-being of all citizens are 
being irretrievably damaged or lost. 

(f)' Special natural and scenic characteristics are being damaged 
by ill-planned development that threatens these values. 

(g) In light of competing demands and the urgent need to protect 
and to give high priority to natural systems in the coastal zone, pres- 
ent state and local institutional arrangements for planning and regu- 
lating land and water uses in such areas are inadequate. 

(h) The key to more effective protection and use of the land and 
water resources of the coastal zone is to encourage the states to exer- 
cise their full authority over the lands and waters in the coastal zone 
by assisting the states, in cooperation with Federal and local govern- 
ments and other vitally affected interests, in developing land and water 
use programs for the coastal zone, including unified policies, criteria, 
standards, methods, and processes for dealing with land and water 
use decisions of more than local significance. 

(i)^ The national objective of attaining a greater degree of energy 
self-sufficiency would be advanced by providing Federal financial 
assistance to meet state and local needs resulting from new or ex- 
panded energy activity in or affecting the coastal zone. 

DECLARATION OF POUCT 

Sec. 303. The Congress finds and declares that it is the national 
policy (a) to preserve, protect, develop, and where possible, to restore 
or enhance, the resources of the Nation's coastal zone for this and 
succeeding generations, (b) to encourage and assist the states to exer- 
cise effectively their responsibilities in the coastal zone through the 
development and implementation of management programs to achieve 
wise use of the land and water resources of the coastal zone giving full 
consideration to ecological, cultural, historic, and esthetic values as 
well as to needs for economic development, (c) for all Federal agen- 
cies engaged in programs affecting the coastal zone to cooperate and 
participate with state and local governments and regional agencies in 
effectuating the purposes of this title, and (d) to encourage the par- 
ticipation of the public, of Federal, state, and local governments and 
of regional agencies in the development of coastal zone management 
programs. With respect to implementation of such management pro- 
grams, it is the national policy to encourage cooperation among the 
various state and regional agencies including establishment of inter- 
state and regional agreements, cooperative procedures, and joint action 
particularly regarding environmental problems. 

DEFINITIONS 

Sec 304. For the purposes of this title — 

(1)2 The term "coastal zone" means the coastal waters (including 



1 Sec. 2(3) of the Coastal Zone Management Act Amendments of 1976, Public Law 
94-370, approved July 26, 1976, 90 Stat. 1013, Inserted a new subsection "(1)" following 
subsection (h). 

* Sec. 3(1) of the Coastal Zone Management Act Amendments of 1976, Public Law 
94-370, approved July 26, 1976, 90 Stat 1013, redesignated paragraph (a) as paragraph 
(1) ; sec. 3(1) (A) of such Act deleted "Coastal" and inserted in lieu thereof "The term 
•coastal'"; sec. 3(1) (B) of such Act added the word "islands" immediately after "and 
includes". 



948 



COASTAL ZONE MANAGEMENT §304 

the lands therein and thereunder) and the adjacent shorelands (in- 
cluding the waters therein and thereunder), strongly influenced by 
each other and in proximity to the shorelines of the several coastal 
states, and includes islands,^ transitional and intertidal areas, salt 
marshes, wetlands, and beaches. The zone extends, in Great Lakes 
waters, to the international boundary between the United States and 
Canada and, in other areas, seaward to the outer limit of the United 
States territorial sea. The zone extends inland from the shorelines 
only to the extent necessary to control shorelands, the uses of which 
have a direct and significant impact on the coastal waters. Excluded 
from the coastal zone are lands the use of which is by law subject 
solely to tlie discretion of or which is held in trust by the Federal 
Government, its officers or agents. 

(2)2 The term "coastal waters" means (A)^ in the Great Lakes 
area, the waters within the territorial jurisdiction of the United States 
consisting of the Great Lakes, their connecting waters, harbors, road- 
steads, and estuary-type areas such as bays, shallows, and marshes 
and (B) in other areas, those waters, adjacent to the shorelines, which 
contain a measurable quantity or percentage of sea water, including, 
but not limited to, sounds, bays, lagoons, bayous, ponds, and estuaries. 
(3) The term "coastal ^ state" means a state of the United States in, 
or bordering on, the Atlantic, Pacific, or Arctic Ocean, the Gulf of 
Mexico, Long Island Sound, or one or more of the Great Lakes. For 
the purposes of this title, the term also includes Puerto Kico, the 
Virgin Islands, Guam, and American Samoa, 

(4)* The term "coastal energy activity" means any of the following 
activities if, and to the extent that (A) the conduct, support, or facili- 
tation of such activity requires and involves the siting, construction, 
expansion, or operation of any equipment or facility; and (B) any 
technical requirement exists which, in the determination of the 
Secretary, necessitates that the siting, construction, expansion, or 
operation of such equipment or facility be carried out in, or in close 
proximity to, the coastal zone of any coastal state ; 

(i) Any outer Continental Shelf energy activity, 
(ii) Any transportation, conversion, treatment, transfer, or 
storage of liquefied natural gas. 

(iii) Any transportation, transfer, or storage of oil, natural 
gas, or coal (including, but not limited to, by means of any deep- 
water port, as defined in section 3(10) of the Deepwater Port Act 
of 1974 (33 U.S.C. 1502(10))). 
For purposes of this paragraph, the siting, construction, expansion, 
or operation of any equipment or facility shall be "in close proximity 
to" the coastal zone of any coastal state if such siting, construction, 
expansion, or operation has, or is likely to have, a significant effect on 
such coastal zone. 



1 Sec. 3(1) (A) of the Coastal Zone Management Act Amendments of 1976, Public Law 
94-370, approved July 26. 1976, 90 Stat. 1013, deleted "Coastal" and inserted in lieu 
thereof "the term 'coastal' " ; Sec. 3(1) (B) of such Act added the word "Islands" immedi- 
ately after "and includes". 

»Sec. 3(2) of the Coastal Zone Management Act Amendments of 1976. Public Law 
94-370. approved July 26. 1976, 90 Stat. 1013. redesignated paragraph (b) as para- 
graph (2) ; sec. 3(2) (A) of such Act deleted "Coastal" and inserted in Ueu thereof "The 
term 'coastar " ; sec. 3(2) (B) of such Act redesignated (1) and (2) as (A) and (B). 

'See. 3f3) of the Coastal Zone Management Act Amendments of 1976, Public Law 
94-370, approved July 26, 1976. 90 Stat 1013, deleted "(c) •coastal'" and inserted in 
lieu thereof : "(3) The terra 'coastal' ". 

* Sec. 3(4) of the Coastal Zone Management Act Amendments of 1976. Public Law 94- 
370, approved July 26, 1976, 90 Stat. 1013, Inserted new paragraphs "(4)" and "(5)". 



949 



§304 COASTAL ZONE MANAGEMENT 

(5)* The term "energy facilities" means any equipment or facility 
which is or will be used primarily — 

, (A) in the exploration for, or the development, production, 
conversion, storage, transfer, processing, or transportation of, any 
energy resource ; or 

(B) for the manufacture, production, or assembly of equip- 
ment, machinery, products, or devices which are involved in any 
activity described in subparagraph (A). 
The term includes, but is not limited to (i) electric generating plants ; 
(ii) petroleum refineries and associated facilities; (iii) gasification 
plants; (iv) facilities used for the transportation, conversion, treat- 
ment, transfer, or storage of liquefied natural gas; (v) uranium 
enrichment or nuclear fuel processing facilities; (vi) oil and gas 
facilities, including platforms, assembly plants, storage depots, tank 
farms, crew and supply bases, and refining complexes; (vii) facilities 
including deepwater ports, for the transfer of petroleum; (viii) pipe- 
lines and transmission facilities; and (ix) terminals which are asso- 
ciated with any of the foregoing. 

(6)2 The term "Estuary" means that part of a river or stream or 
other body of water having unimpaired connection with the open sea, 
where the sea water is measurably diluted with fresh water derived 
from land drainage. The term includes estuary-type areas of the 
Great Lakes. 

(7)^ The term "estuarine sanctuary" means a research area which 
may include any part or all of an estuary and any island, transitional 
area, and upland in, adjoining, or adjacent to such estuary, and which 
constitutes to the extent feasible a natural unit, set aside to provide 
scientists and students the opportunity to examine over a period of 
time the ecological relationships within the area. 

(8)* The term "Fund" means the Coastal Energy Impact Fund 
established by section 308 (h) . 

(9)* The term "land use" means activities which are conducted in, 
or on the shorelands within, the coastal zone, subject to the require- 
ments outlined in section 307(g). 

(10)* The term "local government" means any political subdivision 
of, or an^ special entity created by, any coastal state which (in whole 
or part) is located in, or has authority over, such state's coastal zone 
and which (A) has authority to levy taxes, or to establish and collect 
user fees, or (B) provides any public facility or public service which 
is financed in whole or part by taxes or user fees. The term includes, 
but is not limited to, any school district, fire district, transportation 
authority, and any other special purpose district or authority. 



1 Sec. 3(4) of the Coastal Zone Management Act Amendments of 1976. Public Law 94- 
370. approved July 26, 1976, 90 Stat. 1013, inserted new paragraphs "(4)" and "(5)". 

2 Sec. 3(5) of the Coastal Zone Management Act Amendments of 1976, Public Law 
94-370, approved July 26, 1976, 90 Stat. 1013, deleted "(d) 'Estuary'" and Inserted in 
lieu thereof "(6) The term 'estuary' ". 

3 Sec. 3(6) of the Coastal Zone Management Act Amendments of 1976, Public Law 
94-370, approved July 26, 1976. 90 Stat. 1013, redesignated paragraph (e) as paragraph 
(7) ; sec. 3(6) (A) of such Act deleted "Estuarine" and Inserted In lieu thereof "The 
term 'estuarine'"; sec. 3(6) (B) of such Act deleted the words "estuary, adjoining transi- 
tional areas, and adjacent uplands, constituting" and inserted In lieu thereof "estuary 
and any island, transitional area, and upland in, adjoining, or adjacent to such estuary, 
and which constitutes". 

* Sec. 3(7) of the Coastal Zone Management Act Amendments of 1976, Public Law 
94-370, approved July 26, 1976, 90 Stat. 1013, deleted paragraph (f) which previously 
read as follows: "(f) 'Secretary' means the Secretary of Commerce". This section also 
added new paragraphs "(8)", "(9)" and "(10)". 



950 



COASTAL ZONE MANAGEMENT §305 

(11)^ The term "management program" includes, but is not limited 
to, a comprehensive statement in words, maps, illustrations, or other 
media of communication, prepared and adopted by the state in ac- 
cordance with the provisions of this title, setting forth objectives, 
policies, and standards to guide public and private uses of lands and 
waters in the coastal zone. 

(12)2 rjr-^Q ^gpjn "outer Continental Shelf energy activity" means 
any exploration for, or any development or production of, oil or natu- 
ral oras from the outer Continental Shelf (as defined in section 2(a) 
of the Outer Continental Shelf Lands Act (43 U.S.C. 1331 (a) ) , or the 
siting, construction, expansion, or operation of an}' new or expanded 
energy facilities directly required by such exploration, development, 
or production. 

(13)2 The term "person" means any individual; any corporation, 
partnership, association, or other entity organized or existing under 
the laws of any state; the Federal Government; any state, regional, 
or local government; or any entity of any such Federal, state, regional, 
or local government. 

(14)2 'pj^g term "public facilities and public services" means facili- 
ties or services which are financed, in whole or in part, by any state or 
political subdivision thereof, including, but not limited to, highways 
and secondary roads, parking, mass transit, docks, navigation aids, 
fire and police protection, water supply, waste collection and treat- 
ment (including drainage), schools and education, and hospitals and 
health care. Such term may also include any other facility or servdce so 
financed which the Secretary finds will support increased population. 

(15)2 r^Y^Q term "Secretary" means the Secretary of Conmierce. 

(16)^ The term "water use" means activities which are conducted 
in or on the water; but does not mean or include the establishment of 
any water quality standard or criteria or the regulation of the dis- 
charge or runojff of water pollutants except the standards, criteria, or 
regulations which are incorporated in any program as required by the 
provisions of section 307(f). 



MANAGEMENT PROGRAM DEVELOPMENT GRANTS 

Sec. 305.* (a) The Secretary may make grants to any coastal state — 
(1) under subsection (c) for the purpose of assisting such 
state — in the development of a management program for the land 
and water resources of its coastal zone ; and 

(2)^ under subsection (d) for the purpose of assisting such 
state in the completion of the development, and the initial imple- 
mentation, of its management program before such state qualifies 
for administrative grants under section 306. 



1 Sec. 3(8) of the Coastal Zone Management Act Amendments of 1976. Public Law 
94-370, approved July 26, 1976, 90 Stat. 1013, deleted "(g) 'Management'" and Inserted 
in lieu thereof "(11) The term 'management' ". 

2 Sec. 3(9) of the Coastal Zone Management Act Amendment of 1976. Public Law 
94-370, approved July 26, 1976, 90 Stat. 1013, added new paragraphs "(12)", "(13)", 
"(14)" and "(15)". 

3 Spi-. 3(10) of the Coastal Zone Management Act Amendments of 1976. Public Law 
94-370. approved July 26, 1976. 90 Stat. 1013, deleted "(h) 'Water* " and inserted In lieu 
thereof "(16) The term 'water' ". 

* Sec. 4 of the Coastal Zone Management Act Amendments of 1976. Public Law 94-370, 
approved July 26, 1976, 90 Stat. 1013, Inserted a new section 305 to read as set forth 
In the text 



961 

115-705 0-79-7 



§305 COASTAL ZONE MANAGEMENT 

(b) The management program for each coastal state shall include 
each of the following requirements : 

(1) An identification of the boundaries of the coastal zone 
subject to the management program. 

(2) A definition of what shall constitute permissible land uses 
and water uses within the coastal zone which have a direct and 
significant impact on the coastal waters. 

(3) An inventory and designation of areas of particular con- 
cern within the coastal zone. 

(4) An identification of the means by which the state proposes 
to exert control over the land uses and water uses referred to in 
paragraph (2), including a listing of relevant constitutional pro- 
visions, laws, regulations, and judicial decisions. 

(5) Broad sidelines on priorities of uses in particular areas, 
including specifically those uses of lowest priority. 

(6) A description of the organizational structure proposed to 
implement such management program, including the responsi- 
bilities and interrelationships of local, areawide, state, regional, 
and interstate agencies in the management process. 

(7) A definition of the term *beach' and a planning process 
for the protection of, and access to, public beaches and other public 
coastal areas of environmental, recreational, historical, esthetic, 
ecological, or cultural value. 

(8) A planning process for energy facilities likely to be located 
in, or which may significantly affect, the coastal zone, including, 
but not limited to, a process for anticipating and managing the 
impacts from such facilities. 

(9) A planning process for (A) assessing the effects of shore- 
line erosion (however caused), and (B) studying and evaluating 
ways to control, or lessen the impact of, such erosion, and to 
restore areas adversely affected by such erosion. 

No management program is required to meet the requirements in 
paragraphs (7), (8), and (9) before October 1, 1978. 

(c) The Secretary may make a grant annually to any coastal state 
for the purposes described in subsection (a) (1) if such state reason- 
ably demonstrates to the satisfaction of the Secretary that such grant 
will be used to develop a management program consistent with the 
requirements set forth in section 306. The amount of any such grant 
shall not exceed 80 per centum of such state's costs for such purposes 
in any one year. No coastal state is elijrible to receive more than four 
grants pursuant to this subsection. After the initial grant is made to 
any coastal state pursuant to this subsection, no subsequent grant shall 
be made to such state pursuant to this subsection unless the Secre- 
tary finds that such state is satisfactorily developing its management 
program. 

(d) (1) The Secretary may make a grant annuall;^ to any coastal 
state for the purposes described in subsection (a) (2) if the Secretary 
finds that such state meets the eligibility requirements set forth in 
paragraph (2). The amount of any such grant shall not exceed 80 
per centum of the costs for sufeh purposes in any one year. 

(2) A coastal state is eligible to receive grants under this subsec- 
tion if it has — 



952 



COASTAL ZONE MANAGEMENT §305 

(A) developed a management program which — 

(i) is in compliance with the rules and regulations promul- 
gated to carry out subsection (b) , but 

(ii) has not yet been approved by the Secretary under sec- 
tion 306; 

(B) specifically identified, after consultation with the Secre- 
tary, any deficiency in such program which makes it ineligible 
for approval by the Secretary pursuant to section 306, and has 
established a reasonable time schedule during which it can remedy 
any such deficiency; 

(C) specified the purposes for which any such grant will be 
used; 

(D) taken or is taking adequate steps to meet any require- 
ment under section 306 or 307 which involves any Federal official 
or agency; and 

(E) complied with any other requirement which the Secre- 
tary, by rules and regulations, prescribes as being necessary and 
appropriate to carry out the purposes of this subsection. 

(3) No management program for which grants are made under 
this subsection shall be considered an approved program for purposes 
of section 307. 

(e) Grants under this section shall be made to, and allocated among, 
the coastal states pursuant to rules and regulations promulgated by 
the Secretary; except that — 

(1) no grant shall be made under this section in an amount 
which is more than 10 per centum of the total amount apppropri- 
ated to carry out the purposes of this section, but the Secretary 
may waive this limitation in the case of any coastal state which is 
eligible for grants under subsection (d) ; and 

(2) no grant shall be made under this section in an amount 
which is less than 1 per centum of the total amount appropriated 
to carry out the purposes of this section, but the Secretary shall 
waive this limitation in the case of any coastal state which re- 
quests such a waiver. 

(f ) The amount of any grant (or portion thereof) made under this 
section which is not obligated by the coastal state concerned during the 
fiscal year for which it was first authorized to be obligated by such 
state, or during the fiscal year immediately following, shall revert to 
the Secretary who shall add such amount to the funds available for 
grants under this section. 

(g) With the approval of the Secretary, any coastal state may allo- 
cate to any local government, to any areawide agency designated under 
section 204 of the Demonstration Cities and Metropolitan Develop- 
ment Act of 1966, to any regional agency, or to any interstate agency, 
a portion of any grant received by it under this section for the pur- 
pose of carrying out the provisions of this section. 

(h) Any coastal state which has completed the development of its 
management program shall submit such program to the Secretary for 
review and approval pursuant to section 306. Whenever the Secretary 
approves the management program of any coastal state under section 
306, such state thereafter — 

(1) shall not be eligible for grants under this section; except 
that such state may receive grants under subsection (c) in order 



953 



§306 COASTAL ZONE MANAGEMENT' 

to comply with the requirements of paragraphs (7), (8), and (9) 
of subsection (b) ; and 

(2) shall be eligible for grants under section 306. 
(i) The authority to make grants imder this section shall expire 
on September 30, 1979. 

ADMINISTRATIVE GRANTS 

Sec. 306. (a)^ The Secretary may make a grant annually to any 
coastal state for not more than 80 per centum of the costs of admin- 
istering such state's management program if the Secretary (1) finds 
that such program meets the requirements of section 305(b), and (2) 
approves such program in accordance with subsections (c), (d), and 
(e). 

(b) Such grants shall be allocated to the states with approved pro- 
grams based on rules and regulations promulgated by the Secretary 
which shall take into account the extent and nature of the shoreline 
and area covered by the plan, population of the area, and other rele- 
vant factors: Provided^ That no annual grant made under this sec- 
tion shall be in excess of $2,000,000 for fiscal year 1975, in excess of 
$2,500,000 for fiscal year 1976, nor in excess of $3,000,000 for fiscal 
year 1977 : Provided further^ That no annual grant made under this 
section shall be less than 1 per centum of the total amount appropri- 
ated to carry out the purposes of this section : And provided furthery 
That the Secretary shall waive the application of the 1 per centum 
minimum requirement as to any grant under this section, when the 
coastal State involved requests such a waiver.^ 

(c) Prior to granting approval of a management program sub- 
mitted by a coastal state, the Secretary shall find that : 

(1) The state has developed and adopted a management program 
for its coastal zone in accordance with rules and regulations promul- 
gated by the Secretary, after notice, and with the opportunity of full 
participation by relevant Federal agencies, state agencies, local gov- 
ernments, regional organizations, port authorities, and other inter- 
ested parties, public and private, which is adequate to carry out the 
purposes of this title and is consistent with the policy declared in 
section 303 of this title. 

(2) The state has: 

(A) coordinated its program with local, areawide, and inter- 
state plans applicable to areas within the coastal zone existing on 
January 1 of the year in which the state's management program 
is submitted to the Secretary, which plans have been developed 
by a local government, an areawide agency designated pursuant 
to regulations established under section 204 of the Demonstration 
Cities and Metropolitan Development Act of 1966, a regional 
agency, or an interstate agency ; and 

(B) established an effective mechanism for continuing con- 
sultation and coordination between the management agency desig- 
nated pursuant to paragraph (5) of this subsection and with local 
governments, interstate agencies, regional agencies, and areawide- 



1 Sec. 5 of the Coastal Zone Management Act Amendments of 1976, Public Law 94-370, 
approved July 26, 1976, 90 Stat. 1013, amended section 306(a) to read as set forth ln> 
the text. 

2 Sec. (2) of Public Law 93-612, 88 Stat. 1974, approved Jan. 2, 1975, amended sub- 
•ectlon (b) ©f section 306 by deleting all after "relevant factors" and adding new provisos.- 



954 



COASTAL ZONE MANAGEMENT §306 

agencies within the coastal zone to assure the full participation 
of such local governments and agencies in carrying out the pur- 
poses of this title ; except ^ that the Secretary shall not find any 
mechanism to be effective for purposes of this subparagraph un- 
less it includes each of the following requirements : 

(i) Such management agency is required, before imple- 
menting any management program decision which would 
conflict with any local zoning ordinance, decision, or other 
action, to send a notice of such management program decision 
to any local government whose zoning authority is affected 
thereby. 

(ii) Any such notice shall provide that such local govern- 
ment may, within the 30-day period commencing on the date 
of receipt of such notice, submit to the management agency 
written comments on such management program decision, and 
any recommendation for alternatives thereto, if no action is 
taken during such period which would conflict or interfere 
with such management program decision, unless such local 
government waives its right to comment. 

(iii) Such management agency, if any such comments are 
submitted to it, with such 30-day period, by any local 
government — 

(I) is required to consider any such comments, 

(II) is authorized, in its discretion, to hold a public 
hearing on such comments, and 

(III) may not take any action within such 30-day 
period to implement the management program decision, 
whether or not modified on the basis of such comments. 

(3) The state has held public hearings in the development of the 
management program. 

(4) The management program and any changes thereto have been 
reviewed and approved by the Governor. 

(5) The Governor of the state has designated a single agency to 
receive and administer the grants for implementing the management 
program required under paragraph (1) of this subsection. 

(6) The state is organized to implement the management program 
required under paragraph (1) of tliis subsection. 

(7) The state has the authorities necessary to implement the pro- 
gram, including the authority required luider subsection (d) of this 
section. 

(8)2 The management program provides for adequate consideration 
of the national interest involved in planning for, and in the siting of, 
facilities (including energy facilities in, or which significantly affect, 
such state's coastal zone) which are necessary to meet requirements 
which are other than local in nature. In the case of such energy facili- 
ties, the Secretary shall find tliat the state has given such considera- 
tion to any applicable interstate energy plan or program. 



1 Sec. 5(2) of the Coastal Zone Management Act Amendments of 1976. Public Law 
94-370. approved July 26. 1976, 90 Stat. 1013, amended subsection (c)(2)(B) to read as 
set .S06. 

'Sec. 5(3) of the Coastal Zone Management Act Amendments of 1976, Public Law 
94-370. anproved July 26, 1976, 90 'Stat. 1013, corrected subsection (c) (8) to read as set 
forth in the text 



955 



§306 COASTAL ZONE MANAGEMENT 

(9) The management program makes provision for procedures 
whereby specific areas may be designated for the purpose of preserv- 
ing or restoring them for their conservation, recreational, ecological, 
or esthetic values. 

(d) Prior to granting approval of the management program, the 
Secretary shall find that the state, acting through its chosen agency or 
agencies, including local governments, areawide agencies designated 
under section 204 of the Demonstration Cities and Metropolitan De- 
velopment Act of 1966, regional agencies, or interstate agencies, has 
authority for the management of the coastal zone in accordance with 
the management program. Such authority shall include power — 

(1) to administer land and water use regulations, control devel- 
opment in order to ensure compliance with the management pro- 
gram, and to resolve conflicts among competing uses ; and 

(2) to acquire fee simple and less than fee simple interests in 
lands, waters, and other property through condemnation or other 
means when necessary to achieve conformance with the manage- 
ment program. 

(e) Prior to granting approval, the Secretary shall also find that 
the program provides : 

(1) for any one or a combination of the following general tech- 
niques for control of land and water uses within the coastal zone ; 

(A) State establishment of criteria and standards for local 
implementation, subject to administrative review and enforce- 
ment of compliance ; 

(B) Direct state land and water use planning and regula- 
tion; or 

(C) State administrative review for consistency with the 
management program of all development plans, projects, or 
land and water use regulations, including exceptions and 
variances thereto, proposed by any state or local authority or 
private developer, with power to approve or disapprove after 
public notice and an opportunity for hearings. 

(2) for a method of assuring that local land and water use regu- 
lations within the coastal zone do not unreasonably restrict or 
exclude land and water uses of regional benefit. 

(f) With the approval of the Secretary, a state may allocate to a 
local government, an areawide agency desisfuated under section 204 
of the Demonstration Cities and Metropolitan Development Act of 
1966, a regional agency, or an interstate agency, a portion of the grant 
under this section for the purpose of carrying out the provisions of 
this section : Provided, That such allocation shall not relieve the state 
of the responsibility for ensuring that any funds so allocated are ap- 
plied in furtherance of such state's approved management program. 

(g)^ Any coastal state may amend or modify the manasrement pro- 
gram which it has submitted and which has been approved by the Sec- 
retary under this section, pursuant to the required procedures de- 
scribed in subsection (c). Except with respect to any such amendment 
which is made before October 1. 1978, for the purpose of complying 
with the requirements of paragraphs (7), (8), and (9) of section 
305(b), no grant shall be made under this section to any coastal state 



iSec. 5(4) of the Coastal Zone Management Act Amendments of 1976. Public Law 
«4-370, approved July 26, 1976, 90 Stat. 1013, inserted a new paragraph "(g)". 



956 



COASTAL ZONE MANAGEMENT §307 

after the date of such an amendment or modification, until the Secre- 
tary approves such amendment or modification. 

(h) At the discretion of the state and with the approval of the 
Secretary, a management program may be developed and adopted in 
segments so that immediate attention may be devoted to those areas 
within the coastal zone which most urgently need management pro- 
grams : Provided^ That the state adequately provides for the ultimate 
coordination of the various segments of the management program into 
a single unified program and that the unified program will be com- 
pleted as soon as is reasonably practicable. 

<X)0RDINATI0N AND COOPERATION ^ 

Sec. 307. (a) In carrying out his functions and responsibilities 
under this title, the Secretary shall consult with, cooperate with, and, 
to the maximum extent practicable, coordinate his activities with 
other interested Federal agencies. 

(b) ^ The Secretary shall not approve the management program sub- 
mitted by a state pursuant to section 306 unless the views of Federal 
agencies principally affected by such program have been adequately 
considered. 

(c)(1) Each Federal agency conducting or supporting activities 
directly affecting the coastal zone shall conduct or support those 
activities in a manner which is, to the maximum extent practicable, 
consistent with approved state management programs. 

(2) Any Federal agency which shall undertake any development 
project in the coastal zone of a state shall insure that the project is, 
to the maximum extent practicable, consistent with approved state 
management programs. 

(3) (A) ^ After final approval by the Secretary of a state's manage- 
ment program, any applicant for a required Federal license or permit 
to conduct an activity affecting land or water uses in the coastal zone of 
that state shall provide in the application to the licensing or permit- 
ting agency a certification that the proposed activity complies with 
the state's approved program and that such activity will be conducted 
in a manner consistent with the program. At the same time, the appli- 
cant shall furnish to the state or its designated agency a copy of the 
certification, with all necessary information and data. Each coastal 
state shall establish procedures for public notice in the case of all such 
certifications and, to the extent it deems appropriate, procedures for 
public hearings in connection therewith. At the earliest practicable 
time, the state or its designated agency shall notify the Federal agency 
concerned that the state concurs with or objects to the applicant's 
certification. If the state or its designated agency fails to furnish the 
required notification within six months after receipt of its copy of the 
applicant's certification, the state's concurrence with the certification 
shall be conclusively presumed. No license or permit shall be granted 



1 Sec. 6(1) of the Coastal Zone Management Act Amendments of 1976. Public Law 
94-370, approved July 26. 1976. 90 Stat. 1013, deleted the word "INTERAGENCY" In 
the title of this section. Sec. 6(2) of such Act deleted the last sentence of subsection 
"(b)". Prior to this amendment, this sentence read as follows: "In case of serious dis- 
agreement between any Federal agency and the state in the development of the program 
the Secretary, in cooperation with the Executive Office of the President, shall seek to- 
mediate the differences." Sec. 6(S) of such Act amended subsection (c)(3) by inserting 
"(A)" Immediately after "(3)". 



957 



1307 COASTAL ZONE MANAGEMENT 

by the- Federal agency until the state or its designated agency has con- 
curred with the applicant's certification or until, by the state's failure 
to act, the concurrence is conclusively presumed, unless the Secretary, 
on his own initiative or upon appeal by the applicant, finds, after pro- 
viding a reasonable opportunity for detailed comments from the Fed- 
eral agency involved and from the state, that the activity is consistent 
with the objectives of this title or is otherwise necessary in the interest 
of national securit^^ 

(B)^ After the management program of any coastal state has been 
approved by the Secretary under section 306, any person who submits 
to the Secretary of the Interior any plan for the exploration or devel- 
opment of, or production from, any area which has been leased under 
the Outer Continental Shelf Lands Act (43 U.S.C 1331 et seq.) and 
regulations under such Act shall, with respect to any exploration, de- 
velopm^ent, or production described in such plan and affecting any 
land use or water use in the coastal zone of such state, attach to such 
plan a certification that each activity which is described in detail in 
such plan complios with such state's approved management program 
and will be carried out in a manner consistent with such progam. No 
Federal oi^cial or agency shall grant such person any license or permit 
for any activity described in detail in such plan until such state or its 
designated agency receives a copy of such certification and plan, 
together with any other necessary data and information, and until — 
(i) such state or its designated agency, in accordance with 
the procedures required to be established by such state pursuant 
to subparagraph (A), concurs with such person's certification and 
notifies the Secretary and the Secretary of the Interior of such 
concurrence ; 

(ii) concurrence by such state with such certification is con- 
clusively presumed, as provided for in subparagraph (A) ; or 
(iii) the Secretary finds, pursuant to subparagraph (A), that 
each activity which is described in detail in such plan is consistent 
with the objectives of this title or is otherwise necessary in the 
interest of national security. 
If a state concurs or is conclusively presumed to concur, or if the 
Secretary makes such a finding, the provisions of subparagraph (A) 
are not applicable with respect to such person, such state, and any 
Federal license or permit which is required to conduct any activity 
affecting land uses or water uses in the coastal zone of such state which 
is described in detail in the plan to which such concurrence or find- 
ing applies. If such state objects to such certification and if the 
Secretary fails to make a finding under clause (iii) with respect to 
such certification, or if such person fails substantially to comply with 
such plan as submitted, such person shall submit an amendment to 
such plan, or a new plan, to the Secretary of the Interior. With respect 
to any amendment or new plan submitted to the Secretary of the 
Interior pursuant to the preceding sentence, the applicable time period 
for purposes of concurrence by conclusive presumption under subpara- 
graph (A) is 3 months. 

(d) State and local governments submitting applications for Fed- 
eral assistance under other Federal programs affecting the coastal zone 



»Sec. 6(3) of the Coastal Zone Management Act Amendments of 1976, Public Law 
«4-370, approved July 26, 1976, 90 Stat. 1013. inserted a new paragraph "(B)". 



958 



COASTAL ZONE MANAGEMENT §307 

shall indicate the views of the appropriate state or local agency as to 
the relationship of such activities to the approved management pro- 
gram for the coastal zone. Such applications shall be submitted and 
coordinated in accordance with the provisions of title IV of the Inter- 
governmental Coordination Act of 1968 (82 Stat. 1098) . Federal a.gen- 
cies shall not approve proposed projects that are inconsistent with a 
coastal state's management program, except upon a finding by the 
Secretary that such project is consistent with the purposes of this title 
or necessary in the interest of national security. 

(e) Nothing in this title shall be construed — 

(1) to diminish either Federal or state jurisdiction, responsi- 
bility, or rights in the field of planning, development, or control 
of water resources, submerged lands, or navigable waters ; nor to 
displace, supersede, limit, or modify any interstate compact or the 
jurisdiction or responsibility of any legally established joint or 
common agency of two or more states or of two or more states and 
the Federal Government ; nor to limit the authority of Congress 
to authorize and fund projects; 

(2) as superseding, modifying, or repealing existing laws appli- 
cable to the various Federal agencies ; nor to affect the jurisdiction, 
powers, or prerogatives of the International Joint Commission, 
United States and Canada, the Permanent Engineering Board, 
and the United States operating entity or entities established pur- 
suant to the Columbia River Basin Treaty, signed at Washington, 
January 17, 19G1, or the International Boundary and Water Com- 
mission, United States and Mexico. 

(f) Notwithstanding any other provision of this title, nothing in 
this title shall in any way affect any requirement (1) established by 
the Federal Water Pollution Control Act, as amended, or the Clean Air 
Act, as amended, or (2) established by the Federal Government or by 
any state or local government pursuant to such Acts. Such require- 
ments shall be incorporated in any program developed pursuant to 
this title and shall be the water pollution control and air pollution 
control requirements applicable to such program. 

(g) When any state's coastal zoj e management program, submitted 
for approval or proposed for modification pursuant to section 306 of 
this title, includes requirements as to shorelands which also would be 
subject to any federally supported national land use program which 
may be hereafter enacted, the Secretary, prior to approving such pro- 
gram, shall obtain the concurrence of the Secretary of the Interior, or 
such other Federal official as may be designated to administer the 
national land use program, with respect to that portion of the coastal 
zone management program affecting such inland areas. 

(h)i In case of serious disagreement between any Federal agency 
and a coastal state — 

(1) in the development or the initial implementation of a man- 
agement program under section 305 ; or 

(2) in the administration of a management proeram approved 
under section 306; 

the Secretary, with the cooperation of the Executive Office of the 

oZf?n ?lt^ °^^T®,^°J?l*^^^^o°® Management Act Amendments of 1976. PubUc Law 
94-370. approved July 26, 1976. 90 Stat. 1013. inserted a new paragraph "(h)". 



959 



1308 COASTAL ZONE MANAGEMENT 

President, shall seek to mediaite the differences involved in such dis- 
agreement. The process of such mediation shall, with respect to any 
disagreement described in paragraph (2), include public hearings 
which shall be conducted in the local area concerned. 

COASTAL ENERGY IMPACT PROGRAM 

S^c. 308.^ (a) (1) The Secretary shall administer and coordinate, 
as part of the coastal zone management activities of the Federal (jov- 
«rnment provided for under this title, a coastal energy impact pro- 
<rram. Such program shall consist of the provision of financial assist- 
ance to meet the needs of coastal states and local governments m such 
states resulting from specified activities involving energy development. 
Such assistance, which includes — 

(A) grants, under subsection (b), to coastal states for the pur- 
poses set forth in subsection (b) (4) with respect to consequences 
resulting from the energy activities specified therein ; 

(B) grants, under subsection (c), to coastal states for study 
of, and planning for, consequences relating to new or expanded 
energy facilities in, or which significantly affect, the coastal zone ; 

(C) loans, under subsection (d) (1), to coastal states and units 
of general purpose local government to assist such states and 
units to provide new or improved public facilities or public serv- 
ices which are required as a result of coastal energy activity; 

(D) guarantees, under subsection (d) (2) and subject to the 
provisions of subsection (f), of bonds or other evidences of in- 
debtedness issued by coastal states and units of general purpose 
local government for the purpose of providing new or improved 
public facilities or public services which are required as a result 
of coastal energy activity ; 

(E) grants or other assistance, under subsection (d)(3), to 
coastal states and units of general purpose local government to 
enable such states and units to meet obligations under loans or 
guarantees under subsection (d) (1) or (2) which they are unable 
to meet as they mature, for reasons specified in subsection (d) (3) ; 
and 

(F) grants, under subsection (d)(4), to coastal states which 
have suffered, are suffering, or will suffer any unavoidable loss 
of a valuable environmental or recreational resource; 

shall be provided, administered, and coordinated by the Secretary in 
accordance with the provisions of this section and under the rules and 
regulations required to be promulgated pursuant to paragraph (2). 
Ally such financial assistance shall be subject to audit under section 
313. 

(2) The Secretary shall promulgate, in accordance with section 317, 
such rules and regulations (including, but not limited to, those 
required under subsection (e) ) as may be necessary and appropriate to 
carry out the provisions of this section. 

(b) (1) The Secretary shall make grants annually to coastal states, 
in accordance with the provisions of this subsection. 



1 Sec. 7 of the Coastal Zone Management Act Amendments of 197^. Public Law 
94-370, approved July 26, 1976, 90 Stat. 1013, inserted a new section 308 and redesig- 
XLated sections 308 through 315 as sections 311 through 318. 



960 



COASTAL ZONE MANAGEMENT §308 

(2) The amounts granted to coastal states under tins subsection 
shall be, with respect to any such state for any fiscal year, the sum of 
the amounts calculated, with respect to such state, pursuant to subpara- 
graphs (A), (B),(C), and (D): ,. , , , 

(A) An amount which bears, to one-third of the amount 
appropriated for the purpose of funding grants under this subsec- 
tion for such fiscal year, the same ratio that the amount of outer 
Continental Shelf acreage which is adjacent to such state and 
which is newly leased by the Federal Government in the immedi- 
ately preceding fiscal year bears to the total amount of outer 
Continental Shelf acreage which is newly leased by the Federal 
Government in such preceding year. 

(B) An amount which bears, to one-sixth of the amoimt 
appropriated for such purpose for such fiscal year, the same ratio 
that the volume of oil and natural gas produced in the immediately 
preceding fiscal year from the outer Continental Shelf acreage 
which is adjacent to such state and which is leased by the Federal 
Government bears to the total volume of oil and natural gas pro- 
duced in such year from all of the outer Continental Shelf acre- 
age which is leased by the Federal Government. 

(C) An amount which bears, to one-sixth of the amount 
appropriated for such purpose for such fiscal year, the same ratio 
that the volume of oil and natural gas produced from outer Con- 
tinental Shelf acreage leased by the Federal Government which 
is first landed in such state in the immediately preceding fiscal 
year bears to the total volume of oil and natural gas produced 
from all outer Continental Shelf acreage leased by the Federal 
Government which is first landed in all of the coastal states in 
such year. 

(D) An amount which bears, to one-third of the amount 
appropriated for such purpose for such fiscal year, the same ratio 
that the number of individuals residing in such state in the imme- 
diately preceding fiscal year who obtain new employment in such 
year as a result of new or expanded outer Continental Shelf energy 
activities bears to the total number of individuals residing in all of 
the coastal states in such year who obtain new employment in such 
year as a result of such outer Continental Shelf energy activities. 

(3) (A) The Secretary shall determine annually the amounts of 
the grants to be provided under this subsection and shall collect and 
evaluate such information as may be necessary to make such deter- 
minations. Each Federal department, agency, and instrumentality 
shall provide to the Secretary such assistance in collecting and evaluat- 
ing relevant information as the Secretary may request. The Secretary 
shall request the assistance of any appropriate state agency in collect- 
ing and evaluating such information. 

(B) For purposes of making calculations under paragraph (2), 
outer Continental Shelf acreage is adjacent to a particular coastal 
state if such acreage lies on that state's side of the extended lateral 
seaward boundaries of such state. The extended lateral seaward 
boundaries of a coastal state shall be determined as follows: 

(i) If lateral seaward boundaries have been clearly defined or 
fixed by an interstate compact, agreement, or judicial decision (if 
entered into, agreed to, or issued before the date of the enactment 

961 



1308 COASTAL ZONE MANAGEMENT 

of this paragraph) , such boundaries shall be extended on the basis 
of the principles of delimitation used to so define or fix them in 
such compact, agreement, or decision. 

(ii) If no lateral seaward boundaries, or any portion thereof^ 
have been clearly defined or fixed by an interstate compact, agree- 
ment, or judicial decision, lateral seaward boundaries shall be 
determined according to the applicable principles of law, includ- 
ing the principles of the Convention on the Territorial Sea and 
the Contiguous Zone, and extended on the basis of such principles, 
(iii) If, after the date of enactment of this paragraph, two or 
more coastal states enter into or amend an interstate compact or 
agreement in order to clearly define or fix lateral seaward bound- 
aries, such boundaries shall thereafter be extended on the basis of 
the principles of delimitation used to so define or fix them in such 
compact or agreement. 
(C) For purposes of making calculations under this subsection, the 
transitional quarter beginning July 1, 1976, and ending September 30, 
1976, shall be included within the fiscal year ending June 30, 1976. 

(4) Each coastal state shall use the proceeds of grants received by 
it under this subsection for the following purposes (except that 
priority shall be given to the use of such proceeds for the purpose set 
forth in subparagraph ( A) ) : 

(A) The retirement of state and local bonds, if any, which are 
guaranteed under subsection (d) (2) ; except that, if the amount 
of such grants is insufficient to retire both state and local bonds, 
priority shall be given to retiring local bonds. 

(B) The study of, planning for, development of, and the 
carrying out of projects and programs in such state which are — 

(i) necessary, because of the unavailability of adequate 
financing under any other subsection, to provide new or 
improved public facilities and public services which are re- 
quired as a direct result of new or expanded outer Continental 
Shelf energy activity ; and 

(ii) of a type approved by the Secretary as eligible for 
grants under this paragraph, except that the Secretary may 
not disapprove any project or program for highways and 
secondary roads, docks, navigation aids, fire and police pro- 
tection, water supply, waste collection and treatment 
(including drainage), school and education, and hospitals 
and health care. 

(C) The prevention, reduction, or amelioration of any un- 
avoidable loss in such state's coastal zone of any valuable environ- 
mental or recreational resource if such loss results from coastal 
energy activity. 

(5) The Secretary, in a timely manner, shall determine that each 
coastal state has expended or committed, and may determine that such 
state will expend or commit, grants which such state has received 
under this subsection in accordance with the purposes set forth in 
paragraph (4). The United States shall be entitled to recover from 
any coastal state an amount equal to any portion of any such grant 
received by such state under this subsection which — 

(A) is not expended or committed by such state before the close 
of the fiscal year immediately following the fiscal year in which 
the grant was disbursed, or 



962 



COASTAL ZONE MANAGEMENT §308 

(B) is expended or committed by such state for any purpose 
other than a purpose set forth in paragraph (4). 
Before disbursing the proceeds of any grant under this subsection to 
any coastal state, the Secretary shall require such state to provide 
adequate assurances of being able to return to the United States any 
amounts to which the preceding sentence may apply. 

(c) The Secretary shall make grants to any coastal state if the 
Secretary finds that the coastal zone of such state is being, or is likely 
to be, significantly affected by the siting, construction, expansion, or 
operation of new or expanded energy facilities. Such grants shall be 
used for the study of, and planning for (including, but not limited to, 
the application of the planning process included in a management 
program pursuant to section 305(b) (8) ) any economic, social, or en- 
vironmental consequence which has occurred, is occurring, or is likely 
to occur in such state's coastal zone as a result of the siting, construc- 
tion, expansion, or operation of such new or expanded energy facilities. 
The amount of any such grant shall not exceed 80 per centum of the 
cost of such study and planning. 

(d) (1) The Secretary shall make loans to any coastal state and to 
any unit of general purpose local government to assist such state or 
unit to provide new or improved public facilities or public services, or 
both, which are required as a result of coastal energy activity. Such 
loans shall be made solely pursuant to this title, and no such loan shall 
require as a condition thereof that any such state or unit pledge its 
full faith and credit to the repayment thereof. No loan shall be made 
under this paragraph after September 30, 1986. 

(2) The Secretary shall, subject to the provisions of subsection 
(f), guarantee, or enter into commitments to guarantee, the payment 
of iriterest on, and the principal amount of, any bond or other evidence 
of indebtedness if it is issued by a coastal state or a unit of gen- 
eral purpose local government for the purpose of providing new or 
improved public facilities or public services, or both, which are re- 
quired as a result of a coastal energy activity. 

(3) If the Secretary finds that any coastal state or unit of general 
purpose local government is unable to meet its obligations pursuant to 
a loan or guarantee made under paragraph (1) or (2) because the 
actual increases in employment and related population resulting from 
coastal energy activity and the facilities associated with such activity 
do not provide adequate revenues to enable such state or unit to meet 
such obligations in accordance with the appropriate repayment sched- 
ule, the Secretary shall, after review of the information submitted 
by such state or unit pursuant to subsection (e) (3), take any of the 
following actions: 

(A) Modify appropriately the terms and conditions of such 
loan or guarantee. 

(B) Refinance such loan. 

(C) Make a supplemental loan to such state or unit the pro- 
ceeds of which shall be applied to the payment of principal and 
interest due under such loan or guarantee. 

(D) Make a grant to such state or unit the proceeds of which 
shall be appliea to the payment of principal and interest due 
under such loan or guarantee. 

Notwithstanding the preceding sentence, if the Secretary — 



963 



5308 COASTAL ZONE MANAGEMENT 

(i) has taken action under subparagraph (A), (B), or (C)> 
with respect to any loan or guarantee made under paragraph (1) 
or (2), and 

(ii) finds that additional action under subparagi'aph (A) , (B) ^ 
or (C) will not enable such state or unit to meet, within a rea- 
sonable time, its obligations under such loan or guarantee and 
any additional obligations related to such loan or guarantee; 
the Secretary shall make a grant or grants under subparagraph (D) 
to such state or unit in an amount sufficient to enable such state or 
unit to meet such outstanding obligations. 

(4) The Secretary shall make grants to any coastal state to enable 
such state to prevent, reduce, or ameliorate any unavoidable loss in 
such state's coastal zone of any valuable environmental or recreational 
resource, if such loss results from coastal energy activity, if the Secre- 
tary finds that such state has not received amounts under subsection 
(b) which are sufficient to prevent, reduce, or ameliorate such loss. 

(e) Rules and regulations with respect to the following matters 
shall be promulgated by the Secretary as soon as practicable, but not 
later than 270 days after the date of the enactment of this section : 

(1) A formula and procedures for apportioning equitably, 
among the coastal states, the amounts which are available for the 
provision of financial assistance under subsection (d). Such for- 
mula shall be based on, and limited to, the following factors: 

(A) The number of additional individuals who are ex- 
pected to become employed in new or expanded coastal 
energy activity, and the related new population, who reside 
in the respective coastal states. 

(B) The standardized unit costs (as determined by the 
Secretary by rule) , in the relevant regions of such states, for 
new or improved public facilities and public services which 
are required as a result of such expected employment and 
the related new population. 

(2) Criteria under which the Secretary shall review each 
coastal state's compliance with the requirements of subsection 
(g)(2). . 

(3) Criteria and procedures for evaluating the extent to which 
any loan or guarantee under subsection (d) (1) or (2) which is 
applied for by any coastal state or unit of general purpose local 
government can be repaid through its ordinary methods and rates 
for generating tax revenues. Such procedures shall require such 
state or unit to submit to the Secretary such information whicli 
is specified by the Secretary to be necessary for such evaluation, 
including, but not limited to — 

(A) a statement as to the number of additional individuals 
who are expected to become employed in the new or expanded , 
coastal energy activity involved, and the related new popula- 
tion, who reside in such state or unit ; 

(B) a description, and the estimated costs, of the new or 
improved public facilities or public services needed or likely 
to be needed as a result of such expected employment and 
related new population ; 

(C) a projection of such state's or unit's estimated tax 
receipts during such reasonable time thereafter, not to exceed 
30 years, which will be available for the repayment of such 
loan or guarantee ; and 



964 



COASTAL ZONE MANAGEMENT §308 

(D) a proposed repayment schedule. 
The procedures required by this paragraph shall also provide for 
the periodic verification, review, and modification (if necessary) 
by the Secretary of the information or other material required 
to be submitted pursuant to this paragraph. 

(4) Requirements, terms, and conditions (which may include 
the posting of security) which shall be imposed by the Secretary, 
in connection with loans and guarantees made under subsections 
(d) (1) and (2), in order to assure repayment within the time 
fixed, to assure that the proceeds thereof may not be used to pro- 
vide public services for an unreasonable length of time, and other- 
wise to protect the financial interests of the United States. 

(5) Criteria under which the Secretary shall establish rates 
of interest on loans made under subsections (d) (1) and (3) . Such 
rates shall not exceed the current average market yield on out- 
standing marketable obligations of the United States with re- 
maining periods to maturity comparable to the maturity of such 
loans. 

In developing rules and regulations under this subsection the Secre- 
tary shall, to the extent practicable, request the views of, or consult 
with, appropriate persons regarding impacts resulting from coastal 
energy activity. 

(f)(1) Bonds or otlier evidences of indebtedness guaranteed under 
subsection (d) (2) shall be guaranteed on such terms and conditions 
as the Secretary shall prescribe, except that — 

(A) no guarantee shall be made unless the indebtedness involved 
will be completely amortized within a reasonable period, not to 
exceed 30 years ; 

(B) no guarantee shall be made unless the Secretary determines 
that such bonds or other evidences of indebtedness will — 

(i) be issued only to investors who meet the requirements 
prescribed by the Secretary, or, if an offering to the public 
is contemplated, be underwritten upon terms and conditions 
approved by the Secretary ; 

(ii) bear interest at a rate found not to be excessive by the 
Secretary; and 

(iii) contain, or be subject to, repayment, maturity, and 
other provisions which are satisfactory to the Secretary ; 

(C) the approval of the Secretary of the Treasury shall be re- 
quired with respect to any such guarantee, unless the Secretary 
of the Treasury waives such approval ; and 

(D) no guarantee shall be made after September 30, 1986. 

(2) The full faith and credit of the United States is pledged to 
the payment, under paragraph (5), of any default on any indebted- 
ness guaranteed under subsection (d) (2). Any such guarantee made 
by the Secretary shall be conclusive evidence of the eligibility of the 
obligation involved for such guarantee, and the validity of any such 
guarantee so made shall be incontestable in the hands of a holder of 
the guaranteed obligation, except for fraud or material misrepre- 
sentation on the part of the holder, or known to the holder at the time 
acquired. 

(3) The Secretary fehall prescribe and collect fees in connection 
with guarantees made under subsection (d) (2). These fees may not 



965 



§308 COASTAL ZONE MANAGEMENT? 

exceed the amount which the Secretary estimates to be necessary to 
cover the administrative costs pertaining to such guarantees. 

(4) The interest paid on any obligation which is guaranteed under 
subsection (d) (2) and which is received by the purchaser thereof (or 
the purchaser's successor in interest) , shall be included in gross income 
for the purpose of chapter 1 of the Internal Revenue Code of 1954. 
The Secretary may pay out of the Fund to the coastal state or the unit 
of general puipose local government issuing such obligations not more 
than such portion of the interest on such obligations as exceeds the 
amount of interest that would be due at a comparable rate determined 
for loans made under subsection (d) (1). 

(5) (A) Payments required to be made as a result of any guarantee 
made under subsection (d) (2) shall be made by the Secretary from 
sums appropriated to the Fund or from moneys obtained from the 
Secretary of the Treasury pursuant to paragraph (6) . 

(B) If there is a default by a coastal state or unit of general pur- 
pose local government in any payment of principal or interest due 
under a bond or other evidence of indebtedness guaranteed by the 
Secretary under subsection (d) (2), any holder of such bond or other 
evidence of indebtedness may demand payment by the Secretary of 
the unpaid interest on and the unpaid principal of such obligation as 
they become due. The Secretary, after investigating the facts pre- 
sented by the holder, shall pay to the holder the amount which is due 
such holder, unless the Secretary finds that there was no default by 
such state or unit or that such default has been remedied. 

(C) If the Secretary makes a payment to a holder under subpara- 
graph (B) , the Secretary shall — 

(i) have all of the rights granted to the Secretary or the 
United States by law or by agreement with the obligor ; and 

(ii) be subrogated to all of the rights which were granted such 
holder, by law, assignment, or security agi'eement between such 
holder and the obligor. 
Such rights shall include, but not be limited to, a right of reimburse- 
ment to the United States against the coastal state or unit of general 
purpose local government for which the payment was made for the 
amount of such payment plus interest at the prevailing current rate as 
determined by the Secretary. If such coastal state, or the coastal state 
in which such unit is located, is due to receive any amount under sub- 
section (b), the Secretary shall, in lieu of paying such amount to 
such state, deposit such amount in the Fund until such right of reim- 
bursement has been satisfied. The Secretary may accept, in complete 
or partial satisfaction of any such rights, a conveyance of property or 
interests therein. Any property so obtained by the Secretary may be 
completed, maintained, operated, held, rented, sold, or otherwise dealt _. 
with or disposed of on such terms or conditions as the Secretary"' 
prescribes or approves. If, in any case, the sum received through the 
sale of such property is greater than the amount paid to the holder 
under subparagraph (D) plus costs, the Secretary shall pay any such 
excess to the obligor. 

(D) The Attorney General shall, upon the request of the Secretary, 
take such action as may be appropriate to enforce any right accruing 
to the Secretaiy or the United States as a result of the making of any 
guarantee under subsection (d) (2). Any sums received through any 



966 



COASTAL ZOJIE MANAGEMENT? §308 

sale imckr subparagraph (C) or recovered pursua^nt to this subparar 
graph shall be paid into the Fund. 

(6) If the moneys aTailable to the Secretary are not sufficient to 
pay any amount which the Secretary is obligated to pay Under para- 
graph (5), the Secretary shall issue to the Secretary of the Treasury 
notes or other obligations (only to such extent and in such amounts as 
may be provided for in appropriation Acts) in such forms and denomi- 
nations, bearing such maturities, and subject to such terms and con- 
ditions as the Secretary of the Treasury prescribes. Such notes or 
other obligations shall bear interest at a rate determined by the Secre- 
tary of tiie Treasury on the basis of the current average market yield 
on outstanding marketable obligations of the United States on com- 
parable maturities during the month preceding the issuance of such 
notes or other obligations. Any sums received by the Secretary through 
such issuance shall be deposited in the Fund. The Secretary of the 
Treasury shall purchase any notes or other obligations issued under 
this paragraph, and for this purpose such Secretary may use as a 
public debt transaction the proceeds from the sale of any securities 
issued under the Second Liberty Bond Act, as now or hereafter in 
force. The purposes for which securities may be issued under that Act 
are extended to include any purchase of notes or other obligations 
issued under this paragraph. The Secretary of the Treasury may at 
any time sell any of the notes or other obligations so acquired under 
this paragraph. All redemptions, purchases, and sales of such notes 
or other obligations by the Secretary of the Treasury shall be treated 
as public debt transactions of the United States. 

(g) (1) No coastal state is eligible to receive any financial assistance 
under this section unless such state — 

(A) has a management program which has been approved 
under section 306 ; 

(B) is receiving a grant under section 305(c) or (d) ; or 

(C) is, in the judgment of the Secretary, making satisfactory 
progress toward the development of a management program which 
is consistent with the policies set forth in section 303. 

(2) Each coastal state shall, to the maximum extent practicable, 
provide that financial assistance provided under this section be appor- 
tioned, allocated, and granted to units of local government within such 
state on a basis which is proportional to the extent to which such units 
need such assistance. 

(h) There is established in the Treasury of th^ United States the 
Coastal Energy Impact Fund. The Fund shall be available to the Sec- 
retary without fiscal year limitation as a revolving fund for the 
purposes of carrying out subsections (c) and (d). The Fund shall 
consist of — 

(1) any sums appropriated to the Fund; 

(2) payments of principal and interest received under any loan 
made under subsection (d) (1) ; 

(3) any fees received in connection with any guarantee made 
under subsection (d) (2^); a»id 

(4) any recoveries and receipts under security, subrogation, 
arid other A^ts and authorities described iri silbsectiori (f). 

All payments made by the Secretary to carry out the provisions of 
subsections (c), (d), and (f) (including reimbursenients to other 
Government d-ccoiiiit^)- shafl be paid f pcHn &e Frnidi, only totlie extent 

967 

45-705 0-79-8 



s 



COASTAL ZONE MANAGEMENT 



provided tor in appropriation Acts. Sums in the Fund which are not 
currently needed for the purposes of subsections (c) , (d) , and (f ) shall 
be kept on deposit or invested in obligations of, or guaranteed by, the 
United States. 

(i) The Secretary shall not intercede in any land use or water 
use decision of any coastal state with respect to the siting of any energy 
facility or public facility by making siting in a particular location a 
prerequisite to, or a condition of, financial assistance under this section. 

(j) The Secretary may evaluate, and report to the Congress, on the 
efforts of the coastal states and units of local government therein to 
reduce or ameliorate adverse consequences resulting from coastal 
energy activity and on the extent to which such efforts involve adequate 
consideration of alternative sites. 

(k) To the extent that Federal funds are available under, or pur- 
suant to, any other law with respect to — 

(1) study and planning for which financial assistance may be 
provided under subsection (b) (4) (B) and (c),or 

(2) public facilities and public services for which financial 
assistance may be provided under subsection (b) (4) (B) and (d), 

the Secretary shall, to the extent practicable, administer such sub- 
sections — 

(A) on the basis that the financial assistance shall be in addi- 
tion to, and not in lieu of, any Federal funds which any coastal 
state or unit of general purpose local government may obtain 
under any other law ; and 

(B) to avoid duplication. 
(1) As used in this section 

(1) The term "retirement", when used with respect to bonds, 
means the redemption in full and the withdrawal from circula- 
tion of those which cannot be repaid by the issuing jurisdiction 
in accorda^nce with the appropriate repayment schedule. 

(2) The term "unavoidable", when used with respect to a loss 
of any valuable environmental or recreational resource, means a 
loss, in whole or in part — 

(A) the costs of prevention, reduction, or amelioration of 
which cannot be directly or indirectly attributed to, or 
assessed against, any identifiable person ; and 

(B) cannot be paid for with funds which are available 
under, or pursuant to, any provision of Federal law other 
than this section. 

(3) The temi "unit of general purposes local government" 
means any political subdivision of any coastal state or any special 
entity created by such a state or subdivision which (in whole or 
part) is located in, or has authority over, such state's coastal zone, 
and which (A) has authority to levy taxes or establish and collect 
user fees, and (B) provides any public facility or public service" 
which is financed in whole or part by taxes or user fees. 

INTERSTATE GRANTS 

Sec. 309.^ (a) The coastal states are encouraged to give high 
priority — 

1 Sec. 8 of the Coastal Zone Management Act Amendments of 1976, Public Law 93-870, 
approved July 26, 1976, 90 Stat. 1013, Inserted a new section 309. 

968 



COASTAL ZONE MANAGEMENT §309 

(1) to coordinating state coastal zone plannin.::^, policies, and 
programs with respect to contiguous areas of such states; and 

(2) to studying, planning, and implementing unified coastal 
zone policies with respect to such areas. 

Such coordination, study, planning, and implementation may be con- 
ducted pursuant to interstate agreements or compacts. The Secretary 
may make grants annually, in amounts not to exceed 90 per centum of 
the cost of such coordination, study, planning, or implementation, if 
the Secretary finds that the proceeds of such grants will be used for 
purposes consistent with sections 305 and 306. 

(b) The consent of the Congress is hereby given to two or more 
coastal states to negotiate, and to enter into, agreements or compacts, 
which do not conflict with any law or treaty of the United States, for — 

(1) developing and administering coordinated coastal zone 
planning, policies, and programs pursuant to sections 305 and 
306: and 

(2) establishing executive instrumentalities or agencies which 
such states deem desirable for the effective implementation of such 
agreements or compacts. 

Such agreements or compacts shall be binding and obligatory upon 
any state or party thereto without further approval by the Congress. 

(c) Each executive instrumentality or agency which is established 
by an interstate agreement or compact pursuant to this section is 
encouraged to adopt a Federal-Stat« consultation procedure for the 
identification, examination, and cooperative resolution of mutual prob- 
lems with respect to the marine and coastal areas which affect, directly 
or indirectly, the applicnble coastal zone. The Secretary, the Secretary 
of the Interior, the Chairman of the Council on Environmental Qual- 
ity, the Administrator of the Environmental Protection Agency, the 
Secretary of the department in which the Coast Guard is operating, 
and the Administrator of the Federal Energy Administration, or their 
designated representatives, shall participate ex officio on behalf of the 
Federal Government whenever any such Federal-State consultation is 
requested by such an instrumentality or agency. 

(d) If no applicable interstate agreement or compact exists, the 
Secretary may coordinate coastal zone activities described in sub- 
section (a) and may make grants to assist any group of two or moi*e 
coastal states to create and maintain a temporary planning and 
coordinating entity to — 

(1) coordinate state coastal zone planning, policies, and pro- 
grams with respect to contiguous areas of the states involved; 

(2) study, plan, and im})lement unified coastal zone policies 
with respect to such areas ; and 

(3) establish an effective mechanism, and adopt a Federal- 
State consultation procedure, for the identification, examination, 
and cooperative resolution of mutual problems with respect to 
the marine and coastal areas which affect, directly or indirectly^ 
the applicable coastal zone. 

The amount of such grants shall not exceed 90 per centum of the cost 
of creating and mamtaining such an entity. The Federal officials 
specified in subsection (c), or their designated representatives, shaU 
participate on behalf of the Federal Government, upon the request of 
any such temporary planning and coordinating entity. 



969 



§310 COASTAL ZONE MANAGEMENT 

RESEARCH AND TECHNICAL ASSISTANCE FOR COASTAL ZONE MANAGEMENT 

Sec. 310.^ (a) The Secretary may conduct a program of research, 
study, and training to support the development and implementation of 
management programs. Each department, agency, and instrumentality 
©f the executive branch of the Federal Government may assist the 
Secretary, on a reimbursable basis or otherwise, in carrying out the 
purposes of this section, including, but not limited to, the furnishing 
©f information to the extent permitted by law, the transfer of personnel 
with their consent and without prejudice to their position and rating, 
and the performance of any research, study, and training which does 
not interfere with the performance of the primary duties of such 
department, agency, or instrumentality. The Secretary may enter into 
contracts or other arrangements with any qualified person for the 
purposes of carrying out this subsection. 

(b) The Secretary may make grants to coastal states to assist such 
states in carrying out research, studies, and training required with 
sespect to coastal zone management. The amount of any grant made 
lander this subsection shall not exceed 80 per centum of the cost of such 
research, studies, and training. 

(c) (1) The Secretary shall provide for the coordination of re- 
search, studies, and training activities under this section with any 
other such activities that are conducted by, or subject to the authority 
of the Secretary. 

(2) The Secretary shall make the results of research conducted 
pursuant to this section available to any interested person. 

PUBLIC HEARINGS 

Sec. 311.2 ^n public hearings required under this title must be 
announced at least thirty days prior to the hearing date. At the time 
©f the announcement, all agency materials pertinent to the hearings, 
including documents, studies, and other data, must be made available 
to the public for review and study. As similar materials are subse- 
quently developed, they shall be made available to the public as they 
become available to the agency. 

REVIEW OF performance 

Sec. 312. (a)^ The Secretary shall conduct a continuing review 

(1) the management programs of the coastal states and the 
performance of such states with respect to coastal zone manage- 
ment; and 

(2) the coastal energy impact prgram provided for under 
section 308. 

(b) The Secretary shall have the authority to terminate any finan- 
cial assistance extended under section 306 and to withdraw any un- 
expended portion of such assistance if (1) he determines that the state 
is failing to adhere to and is not justified in deviating from the pro- 

1 Sec. 9 of the Coastal Zone Mnnftgement Act Amendments at 1076, Public Law 04-370, 

approved July ZQ, 1976, 90 Stat. 1013, inserted a new section 310. 

2 Sec. 7 of tbe Coastal Zone Management Act Amendments ©f 1976, Public La;w 04-^70, 
approved July 26, 1976, 90 Stat. 1013, redesignated sections 308 through 315 as sections 
311 through 318. 

3 Sec. 10 of the Coastal Zone Manaeeraent Act Amendments of 1976, PuWlc Law 94-370, 
approved July 26, 1976, .90 Stat. 10J3, amended section 312(a), as so redeeignated by 
section 7 of this Act, to read as set forth In the text. 



970 



COASTAL ZONE MANAGEMENT §313 

gram approved by the Secretary; and (2) the state has been giv^n 
notice of the proposed termination and withdrawal and given an 
opportunity to present evidence of adherence or justification for alter- 
ing its program. 

Sec. 313. (a) Each recipient of a grant under this title or of financial 
assistance under section 308 ^ shall keep such records as the Secretary 
shall prescribe, including records which fully disclose the amount and 
disposition of the funds received under the grant, and of the proceeds 
of such assistance ^ the total cost of the project or undertaking supplied 
by other sources, and such other records as will facilitate an effective 
audit. 

(b)2 The Secretary and the Comptroller General of the United 
States, or any of their duly authorized representatives, shall — 

(1) after any grant is made under this title or any financial 
assistance is provided under section 308(d); and 

(2) until the expiration of 3 years after — 

(A) completion of the project, program, or other under- 
taking for which such grant was made or used, or 

(B) repayment of the loan or guaranteed indebtedness for 
which such financial assistance was provided, 

have access for purposes of audit and examination to any record, book, 
document, and paper which belongs to or is used or controlled by, any 
recipient of the grant funds or any person who entered into any trans- 
action relating to such financial assistance and which is pertinent for 
purposes of determining if the grant funds or the proceeds of such 
financial assistance are being, or were, used in accordance with the 
provisions of this title. 

ADVIBORT COMlfriTEE 

Sec. 314. (a) The Secretary is authorized and directed to establish 
a Coastal Zone Management Advisory Committee to advise, consult 
with, and make recommendations to the Secretary on matters of policy 
concerning the coastal zone. Such conunittee shall be composed of not 
more than fifteen pei*sons designated by the Secretary and shall per- 
form such functions and operate in such a manner as the Secretary 
may direct. Tlie Secretary shall insure tliat the committee member- 
ship as a group possesses a broad range of experience and knowledge 
relating to problems involving management, use, conservation, pro- 
tection, and development of coastal zone resources. 

(b) Members of the committee who are not regular full-time em- 
ployees of the United States, while serving on the business of the 
committee, including traveltime, may receive compensation at rates 
not exceediog $100 per diem ; and while so serving away from their 
homes or regular places of business may be allowed travel expenses, 
including per diem in lieu of subsistanoe, as authorized by section 

o/f^n WJ-i ^i *T^ ^^„"/^^J^?r^*t.^^^^"«-^^"^ ^^ Amendments of 197fi. Public Law 
folTnX?;/-R^r^np?»c.T 26. 1JJ«. 90 Stat. 1013. inserted "AND AUDIT" tmme(3iately 
„T,iJ^L«?„^?»^.P? ' '^?-.^^(2; A) of such Act inserted "or of finajiclal assistance 
-«^h A r?^° *^^.v*™"^^^*^'y following "grant under this title": sec. 11 (2) (B) of 
-rnonw^S . ^*^v*^ rvoTiia "ami of tbe proceeds of soch assistance" Immediately after 
reopived under the ffrant." 

oZ-J-Pn' IIL'^L^ l^t ^«P^?L^°"'' Manajrement Act Amendments of 1976. Public Law 
«t72iL*^^t^^ -L^ir, ^'JV^- ^^ ^^»^- lOl-"^' Amended section S13(b), us so redesig- 
nated ^y section 7 of tfiis Act, to read as set forth In the tvxt 



971 



:§ 315 COASTAL . ZONE MANAGEMENT 

5703 of title 5, United States Code, for individuals in the Govern- 
ment service employed intermittently. 

ESTUARINE SANCTUARIES AND BEACH ACCESS 

Sec. 315.* The Secretary may, in accordance with this section and 
in accordance with such rules and regulations as the Secretary shall 
promulgate, make grants to any coastal state for the purpose of — 

(1) acquiring, developing, or operating estuarine sanctuaries, 
to serve as natural field laboratories in which to study and gather 
data on the natural and human processes occurring within the 
estuaries of the coastal zone ; and 

(2) acquiring lands to provide for access to public beaches and 
other public coastal areas of environmental, recreational, histori- 
cal, esthetic, ecological, or cultural value, and for the preservation 
of islands. 

The amount of any such grant shall not exceed 50 per centum of the 
cost of the project involved ; except that, in the case of acquisition of 
any estuarine sanctuary, the Federal share of the cost thereof shall not 
exceed $2,000,000. 

ANNUAL REPORT 

Sec 316. (a) The Secretary shall prepare and submit to the Presi- 
dent for transmittal to the Congress not later than November 1 of each 
year a report on the administration of this title for the preceding fiscal 
year. The report shall include but not be restricted to (1) an identifi- 
cation of the state programs approved pursuant to this title during 
the preceding Federal fiscal year and a description of those programs ; 
(2) a listing of the states participating in the provisions of this title 
and a description of the status of each state's programs and its accom- 
plishments during the preceding Federal fiscal year; (3) an itemiza- 
tion of the allocation of funds to the various coastal states and a 
breakdown of the major projects and areas on which these funds were 
expended; (4) an identification of any State programs which have been 
reviewed and disapproved or with respect to which grants have been 
terminated under this title, and a statement of the reasons for such 
action; (5) a listing of all activities and projects which, pursuant to 
the provisions of subsection (c) or subsection (d) of section 307, are 
not consistent with an applicable approved State management pro- 
gram; (6) a summary of the regulations issued by the Secretary or in 
effect during the preceding Federal fiscal year; (7) a summary of a 
coordinated national strategy and program for the Nation's coastal 
zone including identification and discussion of Federal, regional, state, 
and local responsibilities and functions therein; (8) a summary of 
outstanding problems arising in the administration of this title in 
order of priority; (9)^ a description of the economic, environmental, 
and social consequences of energy activity affecting the coastal zone 
and an evaluation of the effectiveness of financial assistance under sec- 
tion 308 in dealing with such consequences; (10) a description and 

1 Sec. 12 of the CoaBtal Zone Management Act Amendments of 1976, Public Law 94-370, 
Approved July 26, 1976, 90 Stat. 1013, amended section 315, as so redesignated by sec- 
tion 7 of this Act, to read as set forth In the text. 

2 Sec. 13 of the Coastal Zone Management Act Amendments of 1976. Public Law 94-370, 
approved July 26, 1976, 90 Stat 1013, amended section 316(a), as so redesignated bv 
section 7 of this act, by striking out "and (9)" and Inserting In lieu thereof "(12)" and 
adding new clauses "(8)", "(9)", "(10)", (and "(11)". 

972 



COASTAL ZONE MANAGEMENT §317 

evaluation of applicable interstate and regional planning and coordi- 
nation meclianisms developed by the coastal states; (11) a summary 
and evaluation of the research, studies, and training conducted in sup- 
port of coastal zone management; and (12) such other information as 
mav be appropriate. 

(b) The report required by subsection (a) shall contain such recom- 
mendations for additional legislation as the Secretary deems necessary 
to achieve the objectives of this title and enhance its effective operation. 

RULES AND REGULATIONS 

Sec. 317. The Secretary shall develop and promulgate, pursuant 
to section 553 of title 5^ United States Code, after notice and oppor- 
tunity for full participation by relevant Federal agencies, state 
agencies, local governments, regional organizations, port authorities, 
and other interested parties, both public and private, such rules and 
regulations as may be necessary to carry out the provisions of this 
title. 

AUTHORIZATION OF APPROPRIATIONS 

Sec. 318.^ (a) There are authorized to be appropriated to the 
Secretary — 

(1) such sums, not to exceed $20,000,000 for each of the fiscal 
years ending September 30, 1977, September 30, 1978, and Septem- 
ber 30, 1979, respectively, as may be necessary for grants under 
section 305, to remain available until expended ; 

(2) such sums, not to exceed $50,000,000 for each of the fiscal 
years ending September 30, 1977, September 30, 1978, Septem- 
ber 30, 1979, and September 30, 1980, respectively, as may be 
necessary for grants under section 306, to remain available until 
expended ; 

(3) such sums, not to exceed $50,000,000 for each of the 8 
fiscal years occurring during the period beginning October 1, 1976, 
and ending September 30, 1984, as may be necessary for grants 
imder section 308(b) ; 

(4) such sums, not to exceed $5,000,000 for each of the fiscal 
years ending September 30, 1977, September 30, 1978, Septem- 
ber 30, 1979, and September 30, 1980, respectively, as may be neces- 
sary for grants under section 309, to remain available imtil 
expended ; 

(5) such sums, not to exceed $10,000,000 for each of the fiscal 
years ending September 30, 1977, September 30, 1978, Septem- 
ber 30, 1979, and September 30, 1980, respectively, as may be neces- 
sary for financial assistance under section 310, of which 50 per 
centum shall be for financial assistance imder section 310(a) and 
50 per centum shall be for financial assistance imder section 
310 (b) , to remain available until expended ; 

(6) such sums, not to exceed $6,000,000 for each of the fiscal 
years ending September 30, 1977, September 30, 1978, Septem- 
ber 30, 1979, and September 30, 1980, respectively, as may be neces- 
sary for grants under section 315(1), to remain available imtil 
expended ; 

1 Sec. 14 of the Coastal Zone Management Act Amendments of 1976, Public Law 94- 
no, approved July 26. 1976, 90 Stat. 1013, amended section 318 as so redesignated by 
ihls Act. to read as set forth In the text. 

973 



ji5 Coastal zon* mai^ageMbnt 

(7) siich sums, not to exceed $25^000^000 for ^ch of the fiscal 
years ending September 30, 1977, September 30, 1978, September 
30, 1979, and S^tember 80, 1980, respectively, as may be heces- 
sary for grants tinder sectioii 316(2), to refaistin available, imtil 
expended : and 

(8) such gtiihfe, not to exceed $5,000^000 for each of the fiscal 
years ending Septeriiber 80, 1977, September 30, 19(78, Septem- 
ber 30, 1^79, and September SO, 1980, respectively, as inay be 
necessary for administrative expenses incident to the adminis- 
tration of this title. 

(b) There are authorized to be appropriated until October 1, 1986, 
to the Fund, such sums, not to exceed $800,000,000, for the purposes of 
carrying out the provisions of sectioti 308, other than subsection (b), 
of which not to exceed $50,000,000 shall be for purposes of subsections 
(c) and (d) (4) of such section. 

(c) Federal funds received from other sources shall not be used 
to pay a coastal state's share of costs under section 305, 306, 309, or 
310. 

EXCERPTS FROM COASTAL ZONE MANAGEMENT ACT 
AMENDMENTS OF 1976 

[Public Law 9-370, 90 Stat. 1013] 



SEC. 15. ADMINISTRATION. 

(a) There shall be in the National Oceanic and Atmospheric 
Administration an Associate Administrator for Coastal Zone Man- 
agement, who shall be appointed by the President, by and with the 
advice and consent of the Senate. Such Associate Administrator shall 
be an individual who is, by reason of background and experience, 
especially qualified to direct the implementation and administration 
of the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq). 
Such A^ociate Administrator shall be compensated at the rate now 
or hereafter provided for level V of the Executive Schedule Pay Eates 
(5 U.S.C. 5816). 

(b) Section 5316 of title 5, United States Code, is amended by 
adding at the end thereof the following new paragraph: 

"(140) Associate Administrator for Coastal Zone Manage- 
ment, National Oceanic and Atmospheric Administration.". 

(c) The Secretary liiay, to carry out the provisions of the amend- 
ments made by this Act, establish, and fix the compensation for, four 
new positions without regard to the provision of chapter 51 of title 5, 
United States Code, at rates not in excess of the maximum rate for 
GS-18 of the General Schedule under section 5332 of such title. Any 
such appointment may, at the discretion of the Secretary, be made 
without regard to the provisions of such title 5 governing appoint- 
ments in the competitive service. 

SEC. 16. SHELLFISH SANITATION REGULATIONS. 

(a) The Secretary of Commerce shall — 

(1) undertake a comprehensive review of all aspects of the 
moUuscan shellfish industry, including, but not limited to, the 
harvesting, processings and transportation of such shellfish; and 



974 



COASTAL ZONE MANAGEMENT §16 

(2) evaluate the impact of Federal law concerning water qual- 
ity on the moUuscan shellfish industry. 
The Secretary of Commerce shall, not later than April 30, 1977, sub- 
mit a report to the Congress of the jQndings, comments, and recom- 
mendations (if any) which result from such review and evaluation. 

(b) The Secretary of Health, Education, and Welfare shall not 
promulgate final regulations concerning the national shellfish safety 
program before June 30, 1977. At least 60 days prior to the promul- 
gation of any such regulations, the Secretary of Health, Education, 
and Welfare, in consultation with the Secretary of Conmierce, shall 
publish an analysis (1) of the economic impact of such regulations 
on the domestic shellfish industry, and (2) the cost of such national 
shellfish safety program relative to the benefits that it is expected to 
achieve. 

Approved July 26, 1976. 



975 



§701 

COMPREHENSIVE PLANNING GRANTS 

EXCERPTS FROM HOUSING ACT OF 1954 
[Public Law 560, 83d Congress; 68 Stat. 590, 640, 40 U.S.C. 461] 

CX)MPREHENSIVE PLANNING * 

Sec. 701. (a) In order to assist State ^ and local governments in 
solving planning problems, including those resulting from the in- 
creasing concentration of population in metropolitan and other urban 
areas and the out-migration from and lack of coordinated development 
of resources and services in rural areas ; ^ to facilitate comprehensive 
planning for urban and rural development, including coordinated* 
transportation systems, on a continuing basis by such governments; 
and to encourage such governments to establish and improve planning 
staffs and techniques'* on an areawide basis, and to engage private 
consultants where their professional services are deemed appropriate 
by the assisted governments, the Secretary ® is authorized to make 
planning grants to — 

(1) States^ for the provision of planning assistance to (A)® 
cities and otheg municipalities having a population of iess than 
50,000 according to the latest decennial census, and counties with- 
out regard to population: Provided^ That grants shall be made 

1 Sec. 601, Housing and Urban Development Act of 1968, Public Law 90-448, approved 
August 1, 1968, 82 Stat. 476, 626 substituted "Comprehensive Planning" for "Urban 
Planning". 

Sea 8(b), National Trails System Act, Public Law 90-543, approved October 2, 1968, 82 
Stat. 919, 925, directs the Secretary of HUD, in administering the progrnm of comprehen- 
sive planning assistance to encourage the planning of recreation trails in connection wltb 
the recreation and transportation planning for metropolitan and other urban areas. 
iftl^^Xo'^^^' Housing Act of 1964, Public Law 660, 83d Congress, approved August 2, 
1954, 68 Stat. 590, 641. defines the term "State" as used herein to mean "any State, the 
District of Columbia, the Commonwealth of Puerto Rico, and any territory or possession 
of the United States ;". ^ y 

* Sec. 601, Housing and Urban Development Act of 1968, Public Law 90-448, approved 
« °^lf..-^' ^^^^' ®2 Stat 476, 626, rewrote section 701 to include planning for rural areas 
m addition to planning for metropolitan and other urban areas. 

^K^^^l ^}9S^^^V' Housing Act of 1961. Public Law 87-70, approved June 30, 1961, 
70 btat 149, 170, included planning for coordinated transportation systems. 

*bec. 601, Housing and Urban Development Act of 1968. inserted at this point the 
words beginning with "and techniques" down to and Including the words "the assisted 
governments ". 

• Sec 10, Public Law 90-19. approved May 25, 1967, 81 Stat. 17. 21, substituted "Sec- 
retary for Administrator" throughout this section In order to make it conform to the 
iJepartment of Housing and Urban Development Act which placed all the functions of 
tne Housing and Home Finance Administrator In the Secretary of Housing and Urban 

oo*?^- iPyj^l^V««®' Housing and Community Development Act of 1974, PubUc Law 
»d-383, 88 Stat. 633, approved August 22, 1974. substituted the word "States" for "State 
planning agencies". 

^^ f^%aS^h?^^t^^I ^^* <*' 1^^^' P"^"c Law 88-560, approved September 2, 1964, 78 
fc»tat. 769. 793. substituted this clause for the following: "(A) cities, other municipalities, 
and counties having a population of less than 50,000 according to the latest decennial 
census. . 

Tt^^^L^^^ **t ^^t Housing Act of 1964 anthprlzed urban planning grants under the sec 
Ivio/ li^''^"^ to the city of El Paso. Texas, notwithstanding the population celling to assist 
tnat city m solving those urban planning problems that have resulted or are expected 
to result from the Chamizal Treaty of 1963 between the United States of America and the 
ti«^^.i'*^ ^l Mexico. ^ Any such grants to El Paso are subject to all other conditions and 
requirements In gee. 701. 



977 



J 701 COMPREHENSIVE PLANNING 

under this paragraph for planning assistance to counties having a 
population of 50,000 or more, according to the latest decennial 
census, which are within metropolitan areas, only if (i) the Secre- 
tary finds that planning and plans for such county will be coordi- 
nated with the program of comprehensive planning, if any, which 
is being carried out for the metropolitan area of which the county 
is a part, and (ii) the aggregate amount of the grants made sub- 
ject to this proviso does not exceed 15 per centum of the aggregate 
amount appropriated, after September 2, 1964, for the purposes 
of this section, (B) any group of adjacent communities, either 
incorporated or unincorporated, having a total population of less 
than 50,000 according to the latest decennial census and having 
common or related urban planning problems,^ (C) cities, other 
municipalities, and counties referred to in paragraph (3) of this 
subsection, and areas referred to in paragraph (4) of this sub- 
section, and (D) ^ Indian reservations ; 

(2) States for State, interstate, metropolitan, district or 
regional activities which may be assisted under this section; 

(3) cities (including the District of Columbia) having popu- 
lations of at least 50,000 according to the latest decennial census 
for local activities which may be assisted under this section; 

(4) urban counties as defined under title I of the Housing and 
Community Development Act of 1974 ; 

(5) the area wide organization in any metropolitan area which 
is formally charged with carrying out the provisions of section 
204 of the Demonstration Cities and Metropolitan Development 
Act of 1966 and section 401 of the Intergovernmental Coopera- 
tion Act of 1968 : Provided^ That any such area wide organization, 
to the extent practicable, shall be composed of or responsible to 
the elected officials of the unit or units of general local govern- 
ment for the Jurisdictions of which they are empowered to carry 
out the provisions of such Acts ; 

( 6 ) Indian tribal groups or bodies ; and 

(7) other governmental units or agencies having special 
planning needs related to the purposes of this section, including 
i3ut not limited to interstate regional planning commissions, and 
units or agencies for disaster areas, federally impacted areas, 
and local development districts to the eictent these needs cannot 
otherwise be adequately met,^ 

Activities assisted under this section shall, to the maximum extent 
feasible, cover entire areas having common or related development 
problems. The Secretary shall encourage cooperation in preparing 
and carrying out plans among all interested municipalities, politicsS 
subdivisions, public agencies, and other parties in order to achieve 
coordinated development of entire areas. To the maximum extent 
feasible, pertinent plans and studies already made for areas shall be 
utilized so as to avoid unnecessary repetition of effort and expense.* 

1 The words "resulting from rapid nrbanlzaticin" were deleted at this point by sec. 314(a), 
Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 78 Stat. 769, 792. 

•Added by sec. 315(a) (2), Housing Act of 1964, PubUc Law 88-560, approved Septem- 
ber 2, 1964, 78 Stat. 769. 793. 

»Sec. 401(a)(2) of Housing and Community Development Act of 1974, Public Law 
S3-383, 88 Stat. 633, approved August 22, 1974, substituted new paragraphs ••<2)'* 
through *'f7)" for paragraphs "(2)" through "(11)". 

4 Sec. 401(a)(3) of Housine: and Community Development Act of 1974, Public Law 
«3-383, 88 Stat. 633, approved August 22, 1974. amended this paragraph. 



978 



COMPREHENSIVE PLANNING §701 

(b) Activities which may b3 assisted under this section include 
those necessary (1) to develop and carry out a comprehensive plan as 
part of an ongoing- planning process, (2) to develop and improve the 
management capability to implement such plan or part thereof or 
related plans or planning, and (3) to develop a policy-planning-eval^ 
uation capacity so that the recipient may more rationally (A) deter- 
mine its needs, (B) set long-term goals and short-term objectives, (C) 
devise programs and activities to meet these goals and objectives, and 
(D) evaluate the progress of such programs in accomplishing those 
goals and objectives. Activities assisted under this section shall be car- 
ried out by professionally competent persons. 

(c) Each recipient of assistance under this section shall carry out 
an ongoing comprehensive planning process which shall make provi- 
sion for citizen participation pursuant to regulations of the Secretary 
where major plans, policies, priorities, or objectives are being deter- 
mined. The process shall invoh-e development and subsequent modi- 
fications of a comprehensive r>lan which shall be reviewed at least 
triennially ^ for necessary or desirable amendments. Any such plan 
shall include, as a minimum, each of the following elements : 

(1) A housing element which shall take into account all avail- 
able evidence of the assumptions and statistical bases upon which 
tha projection of zoning, community facilities, and population 
growth is based, so that tlie housing needs of both the region and 
tlie local communities studied in the planning will be adequately 
covered in terms of existing and pi-ospective population growth. 
The development and formulation of State and local goals pursu- 
ant to title XVI of the Housing and Urban Development Act of 
1966 shall be a part of such a housing element. 

(2) A lajid-use element which shall include (A) studies, cri- 
teria, standards, and implementing procedures necessary for 
effectively guiding and conti-olling major decisions as to where 
growth shall take place within the recipient's boundaries, and (B) 
as a guide for governn>ental policies and activities, general plans 
with respect to the pattern and intensity of land use for residen- 
tial, commercial, industrial, and other activities. 

Each of the elements set forth above shall specify (i) broad goals and 
ajinual objectives (in measurable terms wherever possible), (ii) pro- 
grams designed to accomplish these objectives, and (iii) procedures, 
induding criteria set forth in advance, for evaluating programs and 
activities to determine whether they are meeting objectives. Such elo- 
iiients shall be consistent with each other and consistent with stated 
national growth policy, 

(d) After an initial application for assistance under this section 
has been approved, the Secretary may make grants on an annual basis, 
if — 

(1) the applicant submits to the Secretary annually a descrip- 
tion of its work program designed to meet objectives for the next 
succeeding one-year period and setting forth any changes the 
Applicant intends to undertake to achieve better progress; and 

(2) 2 the applicant submits to the Secretary at least triennially 

1 Housing and Community Development Amendments of 1978, Section 304(b), Public 
Law 95-557. 92 Stat. 2080 (approved October 31, 1978) amended this section by striking 
out the word "biennially" and replacing it with the word "triennially." 

2 Housing and Community Development Amendments of 1978, Section 304(c), Public 
Law 95-557, 92 Stat. 2080 (approved October 31. 1978) amended this subsection by strik- 
ing out the word '•biennially and replacing: it with the phrase "at least triennially", and 
by striking the word "two" and replacing it with the word "three." 

979 



§701 COMPREHENSIVE PLANNINQ 

(A) an "evaluation of the progress made by it during the previous 
three years in meeting objectives set forth in its plan, and B a 
description of any changes in the plan's goals or objectives. 
The Secretary shall make no grant after three years from the date 
of enactment of the Housing and Community Development Act of 
1974, to any applicant (other than an applicant described in para- 
graph (6) or (7) of subsection (a)), unless the Secretary is satisfied 
that the comprehensive planning being carried out by the applicant 
includes the elements specified in paragraphs (1) and (2) of subsec- 
tion (c). 

(e) A grant made under this section shall not exceed two-thirds 
of the estimated cost of the work for which the grant is made. There 
are authorized to be appropriated for the purposes of this section not 
to exceed $130,000,000 for the fiscal year 1975, not to exceed $150,- 
000,000 for the fiscal year 1976, not to exceed $100,000,000 for the fiscal 
year 1977, and not to exceed $75,000,000 for the fiscal year 
1978, and not to exceed $57,000,000 for the fiscal year 1979.^ Of the 
funds appropriated under this section, not to exceed an aggregate of 
$10,000,000 plus 5 per centum of the funds so appropriated may be 
used by the Secretary for studies, research, and demonstration proj- 
ects, undertaken independently or by contract, for the development 
and improvement of techniques and methods for comprehensive plan- 
ning and for the advancement of the purposes of this section, and for 
grants to assist in the conduct of studies and research relating to needed 
revisions in State statutes which create, govern, or control local gov- 
ernments and local governmental operations. 

(f ) It is the further intent of this section to encourage compre- 
hensive planning on a unified basis for States, cities, counties, metro- 
politan areas, districts, regions, and Indian reservations and the 
establishment and development of the organizational units needed 
therefor. In extending financial assistance under this section, the Sec- 
retary may require such assurances as he deems adequate that the 
appropriate State and local agencies are making reasonable progress in 
the development of the elements of comprehensive planning. The Sec- 
retary is authorized by contract, grant, or otherwise to provide tech- 
nical assistance to State and local governments, and interstate and 
regional combinations thereof, to Indian tribal bodies, and to govern- 
mental units or agencies described in subsection (a) (7), undertaking 
such planning and, by contract or otherwise, to make studies and 
publish information on comprehensive planning and related manage- 
ment problems. 

(g) The consent of the Congress is hereby given to any two or more 
States to enter into agreements or compacts, not in conflict with any 
law of the United States, cooperative effort and mutual assistance in 
the comprehensive planning for the growth and development of inter- 
state, metropolitan, or other urban areas, and to establish such agencies^ 



iSec. 16(a) of the Housing Authorization Act of 1976, Public Law 94-375, approved 
August 3, 1976, 90 Stat. 1067, amended the first [sic] sentence of section 701(e) of 
the Housing Act of 1954 by striking "and not to exceed $150,000,000 for the fiscal 
year 1976" and inserting in lieu thereof "not to exceed $150,000,000 for the fiscal year 
1976. and not to exceed -SIOO.OOO.OOO for the fiscal year 1977" ; section 112 of the Housing 
and Community Development Act of 1977, Public Law 95-128, approved October 12, 1977, 
deleted "and not to exceed $100,000,000 for the fiscal year 1977" ; and inserted in lieu 
thereof "not to exceed $100,000,000 for the fiscal year 1977, and not to exceed $75,000,000 
for the fiscal year 1978." The phrase, "and not to exceed $57,000,000 for the fiscal year 
1979," was added by Housing and Community Development Amendments of 1978, Se<^ 
304(a), Public Law 95-557, 92 Stat. 2080, approved October 31, 1978. 

980 



COMPREHENSIVE PLANNING §701 

' joint or otherwise, as they may deem desirable for making effective 

such agreements and compacts. 
J (h) In addition to the planning grants authorized by subsection 
J (a), the Secretary is further authorized to make grants to organiza- 
I tions composed of public officials representative of the politiciu juris- 
j dictions within the metropolitan area, region, or district involved for 
J the purpose of assisting such organizations to undertake studies, collect 
data, develop metropolitan, regional, and district plans and programs, 
and engage in such other activities, including implementation of such 
, plans, as the Secretary finds necessary or desirable for the solution 
J of the metropolitan, regional, or district problems in such areas, 
I re^ons, or districts. To the maximum extent feasible, all grants under 
. this subsection shall be for activities relating to all the developmental 
aspects of the total metropolitan area, region, or district including, 
; but not limited to, land use, transportation, housing, economic devel- 
; opment, natural resources development, community facilities, and the 
: general improvement of living environments. 

(i) In addition to the other grants authorized by this section, the 
Secretary is authorized to make grants to assist any city, other munici- 
. pality, or county in making a survey of the structures and sites in 
the locality which are determined by its appropriate authorities to 
, be of historical or architectural value. Any such survey shall be 
designed to identify the historic structures and sites in the locality, 
determine the cost of their rehabilitation or restoration, and provide 
such other information as may be necessary or appropriate to serve 
as a foundation for a balanced and effective program of historic pres- 
ervation in such locality. The aspects of any such survey which relate 
to the identification of historic and architectural values shall be con- 
ducted ill accordance with criteria found by the Secretary to be com- 
parable to those used in establishing the national register maintained 
by the Secretary of the Interior under other provisions of law; and 
the results of each such survey shall be made available to the Secre- 
tary of the Interior. A grant under this subsection shall be made to 
the appropriate agency or entity specified in paragraphs (1) through 
(6) of subsection (a) or, if there is no such agency or entity which is 
qualified and willing to receive the grant and provide for its utiliza- 
tion in accordance with this subsection, directly to the city, other 
municipality, or county involved. 

(j) Grants made under this section may be used, subject to regu- 
lations and conditions prescribed by the Secretary, for any activities 
made eligible by the provisions of this section ; but such regulations 
shall provide that grant assistance shall not be used to defray the 
cost of the acquisition, construction, repair, or rehabilitation of, or the 
preparation of engineering drawings or similar detailed specifications 
for, specific housing, capital facilities, or public works projects. 

(k) The Secretary shall consult with the heads of other Federal 
departments and agencies having responsibilities related to the pur- 
poses of this section, in'^luding responsibilities connected with the 
economic development of rural ana depressed areas and the pro- 
tection and enhancement of the Nation's natural environment, with 
respect to (1) general standards, policies, and procedures to be fol- 
lowed in the administration of this section, and (2) particular grant 
actions or approvals which the Secretary believes to be of special inter- 
est or concern to one or more of such departments and agencies. 

981 



§701 COMPREHENSIVE PLAimttTG 

(1) Funds i^ade available under any Federal assistance program 
for projects or activities, approved as part of or in furtherance of a 
planning program or related management activities assisted under this 
sectioh, may be used jointly with funds made available for such proj- 
ects or activities under any other Federal assistance program, subject 
to regulations prescribed by the President. Such regulations may 
include provisions for common technical or administrative require- 
ments where varying or conflicting provisions of law or regulations 
would otherwise apply, for establishmg joint management fimds and 
common non-Federal shares, and for special agreements or delegations 
of authority, among different Federal agencies in connection with the 
supervision or administration of assistance. Such regulations shall in 
any case include appropriate criteria and procedures to assure that any 
special authorities conferred, which are not otherwise provided for by 
law, shall be employed only as necessary to promote effective and effi- 
cient administration and in a manner consistent with the protection of 
the Federal interest and program' purposes or statutory requirements 
of a substantive nature. For purposes of this subsection, the term "Fed- 
eral assistance program" has the same meaning as in the Intergovern- 
mental Cooperation Act of 1968. 

(m) As used in this section — 

(1) The term "metropolitan area" means a standard metro- 
politan statistical area, as established by the Office of Management 
and Budget, subject, however, to such modifications or extensions 
as the Secretary deems to be appropriate for the purposes of this 
section. 

(2) The term "region" includes (A) all or part of the area of 
jurisdiction of one or more units of general local government, 
and (B) one or more metropolitan areas. 

(3) The term "district" includes all or part of the area of juris- 
diction of (A) one or more counties, and (B) one or more other 
units of general local government, but does not include any por- 
tion of a metropolitan area. 

(4) The term "comprehensive planning" includes the following : 

(A) preparation, as a guide for governmental policies and 
action, of general plans with respect to (i) the pattern and 
intensity of land use, (ii) the provision of public facilities 
(including transportation facilities) and other government 
services, and (iii) the effective development and utilization 
of human and natural resources ; 

(B) identification and evaluation of area needs (including 
housing, employment, education, and health) and formula- 
tion of specific programs for meeting the needs so identified ; 

(C) surveys of structures and sites which are determined 
by the appropriate authorities to be of historic or architec- 
tural value; 

(D) long-range physical and fiscal plans for such action; 

(E) programing of capital improvements and other major 
expenditures, based on a determination of relative urgency, 
together with definite financing plans for such expenditures 
in the earlier years of the program ; 

(F) coordination of all related plans and activities of the 
State and local governments and agencies concerned; and 

(G) preparation of regulatory and administrative meas- 
ures in support of the foregoing. 

982 



COMPREHENSIVE PLANNING §701 

Comprehensive planning for the purpose of districts shall not 
include planning for or assistance to establishments in relocating 
from one area to another or assist contractors or subcontractors 
whose purpose is to divest, or whose economic success is dependent 
upon divesting, other contractors or subcontractors of contracts 
theretofore customarily performed by them. The limitation set 
forth in the preceding sentence shall not be construed to prohibit 
assistance for the expansion of an existing business entity through 
the establishment of a new branch, affiliate, or subsidiary of such 
entity, if the Secretary finds that the establishment of such branch, 
affiliate, or subsidiary will not result in an increase in unemploy- 
ment in the area of original location or in any other area where 
such entity conducts business operations, unless the Secretary has 
reason to believe that such branch, affiliate, or subsidiary, is being 
established with the intention of closing down the operations of 
the existing business entity in the area of its original location or 
in any other area where it conducts such operations. 

(5) The term 'Indian tribal group or body' means any Indian 
tribe, band, group, and nation, including Alaska Indians, Aleuts, 
and Eskimos, and any Alaskan Native Village, of the United 
States, which is considered an eligible recipient under the Indian 
Self-Determination and Education Assistance Act (Public Law 
93-638) or under the State and Local Fiscal Assistance Act of 
1972 (Public Law 92-512) .^ 
(n) In carrying out the provisions of this section relating to plan- 
ning for States, regions, or other multijurisdictional areas whose 
development has significance for purposes of national growth and 
urban development objectives, the Secretary shall encourage the for- 
mulation of plans and programs which will include the studies, criteria, 
standards, and implementing procedures necessary for effectively 
guiding and controlling major decisions as to where growth should 
take place within such States, regions, or areas. Such plans and pro- 
grams shall take account of the availability of and need for conserving 
land and other irreplaceable natural resources; of projected changes 
in size, movement, and composition of population ; of the necessity for 
expanding housing and employment opportunities; of the opportuni- 
ties, requirements, and possible locations for new communities and 
large-scale projects for expanding or revitalizing existing communi- 
ties ;^ and of the need for methods of achieving modernization, simpli- 
fication, and improvements in governmental structures, systems, and 
procedures related to growth objectives. If the Secretary determines 
that activities otherwise eligible for assistance under this section are 
necessary to the development or implementation of such plans and 
programs, he may make grants in support of such activities to any 
governmental agency or organization of public officials which he 
determines is capable of carrying out the planning work involved in an 
effective and efficient manner and may make such grants in an amount 
equal to not more than 80 per centum of the cost of such activities.^ 



1 Added by Sec. 304(d) of Housing and Community Development Amendments of 1978, 
Public Law 95-557. 92 Stat. 2080, approved October 31, 1978. 

2 Subsections "(b)" through "(n)" were substituted for former subsections "(b)" 
through "(j)" by section 401(b) of Housing and Community Development Act of 1974, 
Public Law 9:5-383, approved August 22, 1974, 88 Stat. 633. 



983 

45-705 0-79-9 



§ 1857C-5 

CLEAN AIR 

EXCERPT FROM THE CLEAN AIR ACT 

[84 Stat. 1680, 42 U.S.C. 1857] 

§1857c-5. State implementation plans for national primary and 
secondary ambient air quality standards 

(a) (1) Each State shall, after reasonable notice and public hearings, 
adopt and submit to the Administrator, within nine months after Uie 
promulgation of a national primary ambient air quality standard (or 
any revision thereof) under section 1857c-4 of this title for any air 
pollutant, a plan which provides for implementation, maintenance, and 
enforcement of such primary standard in each air quality control re- 
gion (or portion thereof) within such State. In addition, such State 
shall adopt and submit to the Administrator (either as a part of a plan 
submitted under the preceding sentence or separately) within nine 
months after the promulgation of a national ambient air quality sec- 
ondary standard (or revision thereof), a plan which provides for 
implementation, maintenance, and enforcement of such secondary 
standard in each air quality control region (or portion thereof) within 
such State. Unless a separate public hearing is provided each State 
shall consider its plan implementing such secondary standard at the 
hearing required by the first sentence of this paragraph. 

(2) The Administrator shall, within four months after the date 
required for submission of a plan under paragraph (1), approve or 
disapprove such plan or each portion thereof. The Administrator shall 
approve such plan, or any portion thereof, if he determines that it was 
adopted after reasonable notice and hearing and that — 

(A) (i) in the case of a plan implementing a national primary 
ambient air quality standard, it provides for the attainment of 
such primary standard as expeditiously as practicable but (sub- 
ject to subsection (e) of this section) in no case later than three 
years from the date of approval of such plan (or any revision 
thereof to take account of a revised primary standard) ; and (ii) 
in the case of a plan implementing a national secondary ambient 
air quality standard, it specifies a reasonable time at which such 
secondary standard will be attained ; 

(B) it includes emission limitations, schedules, and timetables 
for compliance with such limitations, and such other measures as 
may be necessary to insure attainment and maintenance of such 
primary or secondary standard, including, but not limited to, 
land-use and transportation controls ; 

(C) it includes provision for establishment and operation of 
appropriate devices, methods, systems, and procedures necessary 
to (i) monitor, compile, and analyze data on ambient air quality 
and, (ii) upon request, make such data available to the Admin- 
istrator ; 



985 



1857C-5 CLEAN AIR 

(D) it includes a procedure, meeting the requirements of para> 
graph (4), for review (prior to construction or modification) of 
the location of new sources to which a standard of performance 

will apply; .... 

(E) it contains adequate provisions for intergovernmental 
cooperation, including measures necessary to insure that emissions 
of air pollutants from sources located in any air quality control 
recjion will not interfere with the attainment or maintenance of 
such prim a 17 or secondary standard in any portion of such region 
outside of such State or in any other air quality control region ;^ 

(F) it provides (i) necessary assurances that the State will 
have adequate personnel, funding, and authority to carry out such 
implementation plan, (ii) requirements for installation of equip- 
ment by owners or operators of stationary sources to monitor emis- 
sions from such sources, (iii) for periodic reports on the nature 
and amounts of such emissions; (iv) that such reports shall be 
correlated by the State agency with any emission limitations or 
standards established pursuant to this chapter, which reports 
shall be available at reasonable times for public inspection : and' 
(v) for authority comparable to that in section 1857h-l of this 

title, and adequate contingency plans to implement such author- 
ity: 

(G) it provides, to the extent necessary and practicable, for 
periodic inspection and testing of motor vehicles to enforce com- 
pliance with apDlicable emission standards; and 

(H) it provides for revision, after public hearings, of such plan^ 
(i) from time to time as may be necessary to take account of re- 
visions of such national primary or secondary ambient air quality 
standard or the availability of improved or more expeditious 
methods of achieving such primary or secondary standard; or 
(ii) whenever the Administrator finds on the basis of information 
available to him that the plan is substantially inadequate to 
achieve the national ambient air quality primary or secondary 
standard which it implements. 
(3) (A) The Administrator shall approve any revision of an im- 
plementation plan applicable to an air quality control region if he 
determines that it meets the requirements of paragraph (2) and has 
been adopted by the State after reasonable notice and public hearings. 
(B) As soon as practicable, the Administrator shall, consistent with 
the purposes of this chapter and the Energy Supply and Environ- 
mental Coordination Act of 1974, review each State's applicable im- 
plementation plans and report to the State on whether such plans can 
be revised in relation to fuel burning stationary sources (or persons 
supplying fuel to such sources) without interfering with the attain- 
ment and maintenance of any national ambient air quality standard 
with the period permitted in this section. If the Administrator deter- 
mines that any such plan can be revised, he shall notify the State that 
a plan revision may be submitted by the State. Any plan revision 
which is submitted by the State shall, after public notice and oppor- 
tunity for public hearing, be approved by the Administrator if the re- 
vision relates only to fuel burning stationary sources (or persons sup- 
plying fuel to such sources), and the plan as revised complies with 
paragraph (2) of this subsection. The Administrator shall approve or 



986 



CLEAN AIR 1857C-6 

disapprove any revision no later than three months after its sub- 
mission. 

(4) The procedure referred to in para^aph (2) (D) for review, 
prior to construction or modification, of the location of new sources 
shall (A) provide for adequate authority to prevent the construction 
or modification of any new source to which a standard of performance 
under section 1857c-6 of this title will apply at any location which 
the State determines will prevent the attainment or maintenance within 
any air quality control region (or portion thereof) within such State 
of a national ambient air quality primary or secondary standard, and 
(B) require that prior to commencing construction or modification of 
any such Source, the owner or operator thereof shall submit to such 
State such information as may be necessary to permit the State to 
make a determination under clause (A). 

(b) The Administrator may, wherever he determines necessary, ex- 
tend the period for submission of any plan or portion thereof which 
implements a national secondary ambient air quality standard for a 
period not to exceed 18 months from the date otherwise required for 
submission of Such plan. 

(c) (1) The Administrator shall, after consideration of any State 
hearing record, promptly prepa^re and publish proposed regulations 
setting forth an implementation plan, or portion thereof, for a State 
if — 

(A) the State fails to submit an implementation plan for any 
national ambient air quality primary or secondary standard within 
the time prescribed, 

(B) the plan, or any portion thereof, submitted for such State 
is determined by the Administrator not to be in accordance with 
the requirements of this section, or 

(C) the State fails, within 60 days after notification by the Ad- 
ministrator or such longer period as he may prescribe, to revise 
an implementation plan as required pursuant to a provision of 
its plan referred to m subsection (a) (2) (H) of this section. 

If such State held no public hearing associated with respect to such 
plan (or revision thereof), the Administrator shall provide oppor- 
tunity for such hearing within such State on any proposed regulation. 
The Administrator shall, within six months after the date required 
for submission of such plan (or revision thereof), promulgate any 
such regulations unle^ss, prior to such prcwtnulgation, such State has 
adopted and submitted a plan (or revision) which the Administrator 
determines to be in accordance with the requirem^its of this section. 
(2) (A) The Administrator shall conduct a study and shall submit 
a report to the Committee on Interstate and Foreign Commerce of the 
United States House of Representatives and the Committee on Public 
Works of the United States Senate not later than three months after 
June 22, 1954, on the necessity of parking surcharge, management of 
parking supply, and preferential bus/carpool lane regulations as part 
of the applicable implementation plans required under this section to 
achieve and maintain national primary ambient air quality staaidards. 
The study shall include an assessment of the economic impact of such 
regulations, consideration of alternative means of reducing total 
vehicle miles traveled, and an assessment of the impact of such regula- 
tions on other Federal and State programs dealing with energy or 



987 



1857C-5 ^^^ ^ 

transportation. In the course of such study, the Administrator shall 
consult with other Federal officials including, but not limited to, the 
Secretary of Transportation, the Federal Energy Administrator, and 
the Chairman of the Council on Environmental Quality. 

(B) No parking surcharge regulation may be required by the Ad- 
ministrator under paragraph (1) of this subsection as a part of an 
applicable implementation plan. All parking surcharge regulations 
previously required by the Administrator shall be void on June 22, 

1974. This subparagraph shall not prevent the Administrator from 
approving parking surcharges if they are adopted and submitted by a 
State as part of an applicable implementation plan. The Administrator 
may not condition approval of any implementation plan submitted by 
a State on such plan's including a parking surcharge regulation. 

(C) The Administrator is authorized to suspend until January 1, 

1975, the effective date or applicability of any regulations for the 
management of parking supply or any requirement that such regula- 
tions be a part of an applicable implementation plan approved or 
promulgated under this section. The exercise of the authority under 
this subparagraph shall not prevent the Administrator from approving 
such regulations if they are adopted and submitted by a State as part 
of an applicable implementation plan. If the Administrator exercises 
the authority under this subparagraph, regulations requiring a review 
or analysis of the impact of proposed parking facilities before con- 
struction which take effect on or after January 1, 1975, shall not apply 
to parking facilities on which construction has been initiated before 
January 1, 1975. 

(D) For purposes of this paragraph — 

(i) The term "parking surcharge regulation" means a regula- 
tion imposing or requiring the imposition of any tax, surcharge, 
fee, or other charge on parking spaces, or any other area used for 
the temporary storage of motor vehicles. 

(ii) The term "management of parking supply" shall include 
any requirement providing that any new facility containing a 
given number of parking spaces shall receive a permit or other 
prior approval, issuance of which is to be conditioned on air 
quality considerations. 

(iii) The term "preferential bus/carpool lane" shall include 
any requirement for the setting aside of one or more lanes of a 
street or highway on a permanent or temporary basis for the ex- 
clusive use of buses or carpools, or both. 

(E) No standard, plan, or requirement, relating to management 
of parking supply or preferential bus/carpool lanes shall be promul- 
gated after June 22, 1974, by the Administrator pursuant to this sec- 
tion, unless such promulgation has been subjected to at least one public 
hearmg which has been held in the area affected and for which reason- 
able notice has been given in such area. If substantial changes are 
made following public hearings, one or more additional hearings shall 
be held m such area after such notice. 

(d) For purposes of this chapter, an applicable implementation 
plan is the implementation plan, or most recent revision thereof, which 
has been approved under subsection (a) of this section or promul- 
gated under subsection (c) of this section and which implements a 
national primary or secondary ambient air quality standard in a State. 



988 



CLEAN AIR 1857C-5 

(e) (1) Upon application of a Governor of a State at the time of 
submission of any plan implementing a national ambient air quality 
primary standard, the Administrator may (subject to paragraph (2) ^ 
extend the three-year period referred to in subsection (a) (2) (A) 
(i) of this section for not more than two years for an air quality con- 
trol region if after review of such plan the Administrator determines 
that — 

(A) one or more emission sources (or classes of moving sources) 
are unable to comply with the requirements of such plan which 
implement such primary standard because the necessary tech- 
nology or other alternatives are not available or will not be avail- 
able soon enough to permit compliance within such three-year 
period, and 

(B) the State has considered and applied as a part of its plan 
reasonably available alternative means of attaining such primarv 
standard and has justifiably concluded that attamment of sucn 
primary standard within the three years cannot be achieved. 

(2) The Administrator may grant an extension under paragraph 
(1) only if he determines that the State plan provides for — 

(A) application of the requirements of the plan which imi)le- 
ment such primary standard to all emission sources in such region 
other than the sources (or classes) described in paragraph (1) 
(A) within the three-year period, and 

(B) such interim measures of control of the sources (or classes) 
described in paragraph (1) (A) as the Administrator determines 
to be reasonable under the circumstances. 

(f ) (1) Prior to the date on which any stationary source or class of 
moving sources is required to comply with any requirement of an ap- 
plicable implementation plan the Governor of the State to which such 
plan applies may apply to the Administrator to postpone the applica- 
bility of such requirement to such sources (or class) for not more than 
one year. If the Administrator determines that — 

(A) good faith efforts have been made to comply with such 
requirement before such date, 

(B) such source (or class) is unable to comply with such re- 
quirement because the necessary technology or other alternative 
methods of control are not available or have not been available for 
a sufficient period of time, 

(C) any available alternative operating procedures and interim 
control measures have reduced or will reduce the impact of such 
source on public health, and 

(D) the continued operation of such source is essential to na- 
tional security or to the public health or welfare, 

then the Administrator shall grant a postponement of such 
requirement. 

(2) (A) Any determination imder paragraph (1) shall (i) be made 
on the record after notice to interested persons and opportunity for 
hearing, (ii) be based upon a fair evaluation of the entire record at 
such hearing, and (iii) include a statement setting forth in detail the 
findings and conclusions upon which the determination is based. 

(B) Any determination made pursuant to this paragraph shall be 
subject to judicial review by the United States court of appeals for the 
circuit which includes such State upon the filing in such court within 
30 days from the date of such decision of a petition by any interested 



989 



185705 . CLEAN AIR 

person praying that the decision be modified or set aside in whole or in 
part. A copy of the petition shall forthwith be sent by registered or 
certified mail to the Administrator and thereupon the Administrator 
shall certify and file in such court the record upon which the final 
decision complained of was issued, as provided in section 2112 of Title 
28. Upon the filing of such petition the court shall have jurisdiction to 
affirm or set aside the determination complained of in whole or in part. 
The findings of the Administrator with respect to questions of fact (in- 
cluding each determination made under subparagraphs (A), (B), (C), 
and (6) of paragraph (1)) shall be sustained if based i^pon a fair 
evaluation of the entire record at such hearing. 

(C) Proceedings before the court under this paragraph shall take 
precedence over all the other causes of action on the docket and shall 
be assigned for hearing and decision at thQ earliest practicable date and 
expedited in every way. 

(D) Section 1857h-5(a) of this title (relating to subpenas) shall 
be applicable to any proceeding undQ? thi$ subsection. 



990 



§ 2 and § 101 

WATEE POLLUTION CONTROL 

EXCERPTS FROW FEDERAL WATER POU^UTION 
CONTROi. ACT AMENDMENTS OF 1972 

£PubUc Law 92-500, 86 Stat. ai6, 33 U-S.C 1251] 
AN ACT To amend the Federal Water Pollution Control Act. 

Be it enacted hy the Senate and House of Representatives of fhe 
United States of America in Congress asserribled^ That this act may 
be cited as the "Federal Water Pollution Control Act Amendments 
of 1972". 

Sec. 2. The Federal Water Pollution Control Act* is amended to 
read as follows: 

"TITLE I— EESEAKCH AND KELATED PROGRAMS 



"Sec. 101. (a) The objective of this Act is to restore and maintain 
the chemical, physical, and biological integrity of the Nation's 
waters. In order to achieve this objective it is hereby declared that, 
consistent with the provisions of this Act — 

"(1) it is the national goal that the discharge of pollutants 
into the navigable waters be eHminated by 1985; 

"(2) it is the national goal that wherever attainable, an in- 
terim goal of water quality which provides for the protection 
and propagation of fish, shellfish, and wildlife and provides for 
recreation in and on the water be achieved by July 1, 1983 ; 

"(3) it is the national policy that the discharge of toxic pol- 
lutants in toxic amounts be prohibited; 

"(4) it is the national policy that Federal financial assistance 
be provided to construct publicly owned waste treatment works ; 
"(5) it is the national policy that areawide waste treatment 
management planning processes be developed and implemented 
to assure adequate control of sources of pollutants in each State ; 
and 

"(6) it is the national policy that a major research and dem- 
onstration effort be made to develop technology necessary to 
eliminate the discharge of pollutants into the navigable waters, 
waters of the contiguous zone, and the oceans. 
"(b) It is the policy of the Congress to recognize, presei*ve, and 
protect the primary responsibilities and rights of States to prevent^ 
reduce, and eliminate pollution^ to plan the developmwit and use (in- 
cluding restoration, preservation, and enhancement) of land and 
water resources, and to consult with the Administrator in the -ex- 
ercise of his authority under this Act. It is the policy of Congress that. 

•33 U.S.C.A. \ 1151 et seq. 



991 



§102 WATER POLLUTION CONTROL 

the State manage the construction grant program under this Act and 
implement the permit programs under sections 402 and 404 of this 
Act.^ It is further the policy of the Congress to support and aid re- 
search relating to the prevention, reduction, and elimination of pollu- 
tion, and to provide Federal technical services and financial aid to 
State and interstate agencies and municipalities in connection with the 
prevention, reduction, and elimination of pollution. 

"(c) It is further the policy of Congress that the President, act- 
ing through the Secretary of State and such national and interna- 
tional organizations as he determines appropriate, shall take such 
action as may be necessary to insure that to the fidlest extent pos- 
sible all foreign countries shall take meaningful action for the pre- 
vention, reduction, and elimination of pollution in their waters and 
in international waters and for the achievement of goals regarding 
the elimination of discharge of pollutants and the improvement oi 
water quality to at least the same extent as the United States does 
imder its laws. 

"(d) Except as otherwise expressly provided in this Act, the Ad- 
ministrator of the Environmental Protection Agency (hereinafter 
in this Act called * Administrator') shall administer this Act. 

"(e) Public participation in the development, revision, and en- 
forcement of any regulation, standard, effluent limitation, plan, or 
program established by the Administrator or any State under this 
Act shall be provided for, encouraged, and assisted by the Admin- 
istrator and the States. The Administrator, in cooperation with the 
States, shall develop and publish regulations specifying minimum 
guidelines for public participation in such processes. 

"(f) It is the national policy that to the maximum extent possible 
the procedures utilized for implementing this Act shall encourage 
the drastic minimization of paperwork and interagency decision pro- 
cedures, and the best use of available manpower and funds, so as to 
prevent needless duplication and unnecessary delays at all levels of 
government. 

"(g) ^ It is the policy of Congress that the authority of each State to 
allocate quantities of water within its jurisdiction shall not be super- 
seded, abrogated or otherwise impaired by this Act. It is the further 
policy of Congress that nothing in this Act shall be construed to super- 
sede or abrogate rights to quantities of water which have been estab- 
lished by any State. Federal agencies shall co-operate with State and 
local agencies to develop comprehensive solutions to prevent, reduce 
and eliminate pollution in concert with programs for managing water 
resources. 

"comprehensive programs for water POLLUTION CONTROL 

^ "Sec. 102. (a) The Administrator shaU, after careful investiga- 
tion, and in cooperation with other Federal agencies. State water 
pollution control agencies, interstate agencies, and the municipali- 
ties and industries mvolved, prepare or develop comprehensive pro- 
grams for preventing, reducing, or eliminating tiie pollution of the 

1 Sec. 26(b) of the Clean Water Act of 1977, Public Law 95-217, approved December 27, 
1977, amended section 101(b) by inserting this sentence. 

« Sec. 5(a) of the Qean Water Act of 1977, Public Law 95-217, approved December 27, 
1977, amended section 101 by adding at the end thereof new subsection (g). 



992 



WATER POLLUTION CONTROL §102 

navigable waters and ground waters and improving the sanitary con- 
dition of surface and underground waters. In the development of 
such comprehensive programs due regard shall be given to the im- 
provements which are necessary to conserve such waters for the protec- 
tion and propagation of fish and aquatic life and wildlife, recreational 
purposes, and the withdrawal of such waters for public water supply, 
agricultural, industrial, and other purposes. For the purpose of tlus 
section, the Administrator is authorized to make joint investigations 
with any such agencies of the condition of any waters in any State or 
States, and of the discharges of any sewage, industrial wastes, or sub- 
stance which may adversely affect such waters. 

"(b) (1) In the survey or planning of any reservoir by the Corps 
of Ensdneers, Bureau of Reclamation, or other Federal agency, con- 
sideration shall be given to inclusion of storage for regulation of 
streamflow, except that any such storage and water releases shall 
not be provided as a substitute for adequate treatment or other 
methods of controlling waste at the source. 

" (2) The need for and the value of storage for regulation of 
streamflow (other than .for water quality) including but not lim- 
ited to navigation, salt water intrusion, recreation, esthetics, and 
fish and wildlife, shall be determined by the Corps of Engineers, 
Bureau of Reclamation, or other Federal agencies. 

"(3) The need for, the value of, and the impact of, storage for 
water quality control shall be determined by the Administrator, and 
his views on these matters shall be set forth in any report or pres- 
entation to Congress proposing authorization or construction of 
any reservoir including such storage. 

"(4) The value of such storage shall be taken into account in de- 
termining the economic value of the entire project of which it is a 
part, and costs shall be allocated to the purpose of regulation of 
streamflow in a manner which will insure that all project purposes, 
share equitably in the benefits of multiple-purpose construction. 

"(5) Cost of regrilation of streamflow features incorporated in 
any Federal reservoir or other impoundment under the provisions of 
this Act shall be determined and the beneficiaries identified and if 
the benefits are widespread or national in scope, the costs of such 
features shall be nonreimbursable. 

"(6) No license granted by the Federal Power Commission for a 
hydroelectric power project shall include storage for regulation of 
streamflow for the purpose of water quality control unless the Ad- 
ministrator shall recommend its inclusion and such reservoir storage 
capacity shall not exceed such proportion of the total storage re- 
quired for the water quality control plan as the drainage area of 
such reservior bears to the drainage area of the river basin or 
basins involved in such water quality control plan. 

"(c) (1) The Administrator shall, at the request of the Governor 
of a State, or a majority of the Governors when more than one State 
is involved, make a grant to pay not to exceed 50 per centum of the 
administrative expenses of a planning agency for a period not to ex- 
ceed three years, which period shall begin after the date of enact- 
ment of the Federal Water Pollution Control Act Amendments of 
1972, if such agency provides for adequate representation of appro- 
priate State, interstate^ local, or (when appropriate) international 



993 



§ 1Q2 WATER POLLUTION CONTROL 

interests in the basin or portion thereof involved and is capable of 
developing an effective, comprehensive water quality control plan for 
a basin or portion thereof . 

"(2) Each planning agency receiving a grant under this subsection 
shall develop a comprehensive pollution control plan for the basin or 
portion thereof which — 

"(A) is consistent with any applicable water quality stand- 
ards, effluent and other limitations, and thermal discharge regu- 
lations established pursuant to current law within the basin; 

*'(B) recommends such treatment works as will provide the 
most effective and economical means of collection, storage, 
treatment, and elimination of pollutants and recommends means 
to encourage both municipal and industrial use of such works; 

"(C) recommends maintenance and improvement of water qual- 
ity within the basin or portion thereof and recommends methods 
of adequately financing those facilities as may be necessary to 
implement the plan ; and 

"(D) as appropriate, is developed in cooperation with, and is 
consistent with any comprehensive plan prepared by the Water 
Resources Council, any areawide waste management plans de- 
veloped pursuant to section 208 of this Act, and any State plan 
developed pursuant to section 303 ( e ) of this Act. 
"(3) For the purposes of this subsection the term 'basin' includes, 
but is not limited to, rivers and their tributaries, streams, coastal wa- 
ters, sounds, estuaries, bays, lakes, and portions thereof, as well as the 
lands drained thereby." 

"(d)^ The Administrator, after consultation with the States, and 
River Basin Commissions established under the Water Resources 
Planning Act, shall submit a report to Congress on or before July 1, 
1978, which analyzes the relationship between programs under this 
Act, and the programs by which State and Federal agencies allocate 
quantities of water. Such report shall include recommendations con- 
cerning the policy in section 101 (g) of the Act to improve coordination 
of efforts to reduce and eliminate pollution in concert with programs 
for managing water resources.". 



"rural village study ^ 

* * * mi * its * 

"Sec. 113.2 * * * 

"(e) The Administrator is authorized to coordinate with the Sec- 
retary of the Department of Health, Education, and Welfare, the 
Secretary of the Department of Housing and Urban Development, 
the Secretary of the Department of the Interior, the Secretary of the 
Department of Agriculture, and the heads of anv other departments 
or agencies he may deem appropriate to conduct a joint study with 
representatives of the State of Alaska and the appropriate Native 

iQ7l^orr,lW 1^^ *5f ^^fRJ^^'^^^^ ^^* Of 1977, Public Law 95-217. approved December 27, 

JL'^ 11?^^ ^f'v^v""^,^- by addinp: at the end thereof a new subsection (d). 
1Q77 or^ii^L^^ *^f ^^i^o ^^*®^.-^^* ^^ l^^"^' ^^^^^c Law 95-217, approved December 27, 
the t ™^°*^®^ section 113 by adding new subsections (e), (f), and (g) as set forth in 



994 



WATER POLLUTION CONTROL § 78 

organizations (as defined in Public Law 92-203) to develop a compre- 
hensive program for achieving adequate sanitation services in Alaska 
villages. This study shall be coordinated with the programs and proj- 
ects authorized by sections 104 (q) and 105(e)(2) of this Act. The 
Administrator shall submit a report of the results of the study, to- 
gether with appropriate supporting data and such recommendations 
as he deems desirable, to the Committee on Environment and Public 
Works of the Senate and to the Committee on Public Works and 
Transportation of the House of Representatives not later than Decem- 
ber 31, 1979. The Administrator shall also submit recommended ad- 
ministrative actions, procedures, and any proposed legislation neces- 
sary to implement the recommendations of the study no later than 
June 30, 1980. 

"(f) The Administrator is authorized to provide technical, finan- 
cial and management assistance for operation and maintenance of the 
demonstration projects constructed under this section, until such time 
as the recommendations of subsection (e) are implemented. 

"(g) For the purpose of this section, the term 'village' shall mean 
an incorporated or unincorporated community with a population of 
ten to six hundred people living within a two-mile radius. The term 
'sanitation services' shall mean water supply, sewage disposal, solid 
waste disposal and other services necessary to maintain generally 
accepted standards of personal hygiene and public health.". 

******* 

Approved October 18, 1972. 

EXCERPT FROM THE CLEAN WATER ACT OF 1977 
[Public Law 95-217, 91 Stat. 1611, U.S.C. 1281a] 



TOTAL TREATMENT SYSTEM FUXDIXG 

Sec. 78. Notwithstanding any other provision of law, in any case 
where the Administrator of the Environmental Protection Agency 
finds that the total of all gi'ants made under section 201 of the Federal 
AVater Pollution Control Act for the same treatment works exceeds the 
actual construction costs for such treatment works (as defined in that 
Act) such excess amount shall be a grant of the Federal share (as 
defined in that Act) of the cost of construction of a sewage collection 
system if — 

(1) such sewage collection system was constructed as part of 
the same total treatment system* as the treatment works for which 
such section 201 grants were approved, and 

(2) an application for assistance for the construction of such 
sewage collection system, was filed in accordance with section 702 
of the Housing and Urban Development Act of 1965 (42 U.S.C. 
3102) before all such section 201 grants were made and such sec- 
tion 702 grant could not be approved due to lack of funding under 
such section 702. 

The total of all grants for sewage collection systems made under this 
section shall not exceed $2,800,000. 
Approved December 27, 1977. 



995 



§304 

ENERGY CONSERVATION 

DEPARTMENT OF ENERGY 

EXCERPTS FROM DEPARTMENT OF ENERGY ORGANIZATION ACT 

[Public Law 95-91, 91 Stat. 565] 
******* 

TITLE II— ESTABLISH:\IENT of the DEPAETjMEXT 

ESTABLISHMENT 

Sec. 201. There is hereby established at the seat of government an 
executive department to be known as the Department of Energy. 
There shall be at the head of the Department a Secretary of Energy 
(hereinafter in this Act referred to as the "Secretary"), who shall be 
appointed by the President by and with the advice and consent of the 
Senate. The Department shall be administered, in accordance with the 
provisions of this Act, under the supervision and direction of the 
Secretary. 

******* 

TRANSFERS FRO^SI THE DEPARTIMENT OF HOUSING AND URBAN DE\T:L0PMENT 

Sec. 304. (a) There is hereby transferred to, and vested in, the 
Secretary the functions vested in the Secretary of Housing and Urban 
Development pursuant to section 304 of the Energy Conservation 
Standards for New Buildings Act of 1976, to develop and promulgate 
energy conservation standards for new buildings. The Secretary of 
Housing and Urban Development shall provide the Secretary with 
any necessary technical assistance in the development of such stand- 
ards. All other responsibilities, pursuant to title III of the Energy 
Conserv^ation and Production Act, shall remain with the Secretary of 
Housing and Urban Development, except that the Secretary shall be 
kept fully and currently informed of the implementation of the 
promulgated standards. 

(b) There is hereby transferred to, and vested in, the Secretary the 
functions vested in the Secretary of Housing and Urban Development 
pursuant to section 509 of the Housing and Urban Development Act 
of 1970. 

******* 

Approved August 4, 1977. 

EXCERPTS FROM ENERGY CONSERVATION AND 
PRODUCTION ACT 

[Public Law 94-385, 90 Stat. 1125] 



997 



I 302 ENERGY CONSERVATION- 

TITLE III— ENERGY CONSERVATION STANDARDS FOR 
NEW BUILDINGS 

SHORT TITLE 

Sec. 301. This title may be cited as the "Energy Conservation 
Standards for New Buildings Act of 1976". 

FINDINGS AND PURPOSES 

Sec. 302. <a) The Congress finds that — 

(1) large amounts of fuel and energy are consumed unneces- 
sarily each year in heating, cooling, ventilating, and providing 
domestic hot water for newly constructed residential and com- 
mercial buildings because such buildings lack adequate energy 
conservation features; 

(2) Federal performance standards for newly constructed 
buildings can prevent such waste of energy, which the Nation can 
no longer afford in view of its current and anticipated energy 
shortage ; 

(3) the failure to provide adequate energy conservation meas- 
ures in newly constructed buildings increases long-term operat- 
ing costs that msij affect adversely the repayment of, and security 
for, loans made, insured, or guaranteed by Federal agencies or 
made by federally insured or regulated instrumentalities; and 

(4) State and local building codes or similar controls can 
provide an existing means by which to assure, in coordination 
with other building requirements and with a minimum of Federal 
interference in State and local transactions, that newly constructed 
buildings contain, adequate energy conservation features. 

(b) The purposes of this title, therefore, are to — 

(1) redirect Federal policies and practices to assure that rea- 
sonable energy conservation features will be incorporated into 
new commercial and residential buildings receiving Federal finan- 
cial assistance; 

(2) provide for the development and implementation, as soon 
as practicable, of performance standards for new residential and 
commercial buildings which are designed to achieve the maxi- 
mum practicable improvements in energy efficiency and increases 
in the use of nondepletable sources of energy; and 

(3) encourage States and local governments to adopt and 
enforce such standards through their existing building codes and 
other construction control mechanisms, or to apply them tlirough 
a special approval process. 

definitions 

Sec. 303. As used in this title : ^ 

(1) The term "Administrator" means the Administrator of the' 
Federal Ener^ Administration; except that after such Admin- 
istration ceases to exist, such term laeaas any officer of the United 
States designated by the President for purposes of this title. 



-^1^^^ Department of Energy Organization Act, Public Law 95-91, approved August 4, 
1977, tnfra, regarding transfer of functions to Department of Energy. ^ 



998 



ENERGY CONSERVATION §303 

(2) The term "building" means any structure to be constructed 
which includes provision for a heating or cooling system, or both, 
or for a hot water system. 

(3) The term "building code" means a legal instrument which 
is in effect in a State or unit of general purpose local government, 
the provisions of which must be adhered to if a building is to be 
considered to be in conformance with law and suitable for occu- 
pancy and use. 

(4) The term "commercial building" means any building other 
than a residential building, including any building developed for 
industrial or public purposes. 

(5) The term "Federal agency" means any department, agency, 
corporation, or other entity or instrumentality of the executive 
branch of the Federal Government, including the United States 
Postal Service, the Federal National Mortgage Association, and 
the Federal Home Loan Mortgage Corporation. 

(6) The term "Federal building" means any building to be 
constructed by, or for the use of, any Federal agency which is 
not legally subject to State or local building codes or similar 
requirements. 

(7) The term "Federal financial assistance" means (A) any form 
of loan, grant, guarantee, insurance, payment, rebate, sub- 
sidy, or any other form of direct or indirect Federal assistance 
(other than general or special revenue sharing or formula grants 
made to States) approved by any Federal officer or agency; or 
(B) any loan made or purchased by any bank, savings and loan 
association, or similar institution subject to regulation by the 
Board of Governors of the Federal Reserve System, the Federal 
Deposit Insurance Corporation, the Comptroller of the Currency, 
the Federal Home Loan Bank Board, the Federal Savings and 
Loan Insurance Corporation, or the National Credit Union 
Administration. 

(8) The term "National Institute of Building Sciences" means 
the institute established by section 809 of the Housing and Com- 
munity Development Act of 1974. 

(9) The term "performance standards" means an energy con- 
sumption goal or goals to be met without specification of the 
methods, materials, and processes to be employed in achieving 
that goal or goals, but including statements of the requirements, 
criteria and evaluation methods to be used, and any necessary- 
commentary. 

(10) The term "residential building" means any structure 
which is constructed and developed for residential occupancy. 

(11) The term "Secretary" means the Secretary of Housing 
and Urban Development. 

(12) The term "State" includes each of the several States, the 
District of Columbia, the Commonwealth of Puerto Rico, and 
any territory and possession of the United States. 

(13)' The term "unit of general purpose local government" 
means any city, county, town, municipality, or other political 
subdivision of a State (or any combination thereof), which has 
a building code or similar authority over a particular geographic 
area. 



999 

45-705 0-79-10 



5 304 ENERGT CONSERVATION 

PROMULGATION OP ENERGT CONSERVATION PERFORMANCE STANDARDS FOl 

NEW BUILDINGS 

Sec 304. (a) (1) As soon as practicable, but in no event later thai 
3 years after the date of enactment of this title, the Secretary, onhj 
after consultation with the Administrator, the Secretary of Commerci 
utilizing the services of the Director of the National Bureau of Stand 
ards and the Administrator of the General Services Administration 
shall develop and publish in the Federal Kegister for public commen 
proposed performance standards for new commercial buildings. Fina 
performance standards shall be promulgated within 6 months after th( 
date of publication of the proposed standards, and shall become effec 
tive within a reasonable time, not to exceed 1 year after the date o: 
promulgation, as specified by the Secretary. 

(2) As soon as practicable, but in no event later than 3 years aftei 
the date of enactment of this title, the Secretary, only after consulta 
tion with the Administrator and the Secretary of Commerce utilizing 
the services of the Director of the National Bureau of Standards, shal 
develop and publish in the Federal Kegister for public comment pro 
posed performance standards for new residential buildings. Fina^ 
performance standards for such buildings shall be promulgated withir 
6 months after the date of publication of the proposed standards, anc 
shall become effective within a reasonable time, not to exceed 1 yeai 
after the date of promulgation, as specified by the Secretary. 

(3) In the development of performance standards, the Secretary 
shall utilize the sex vices of the National Institute of Building Sciences 
under appropriate contractual arrangements. 

(b) All performance standards promulgated pursuant to subsectior 
(a) shall take account of, and make such allowance or particulai 
exception as the Secretary determines appropriate for, climatic varia- 
tions among the different regions of the country. 

(c) The Secretary, in consultation with the Administrator, the 
Secretary of Commerce, the Administrator of the General Servicer 
Administration, and the heads of other appropriate Federal agen 
cies, and the National Institute of Building Sciences, shall periodically 
review and provide for the updating of performance standards pro 
mulgated pursuant to subsection (a) . 

(d) The Secretary, if he finds that the dates otherwise specified 
in this section for publication of proposed, or for promulgation oi 
final, performance standards under subsection (a) (1) or (a) (2) cannot 
practicably be met, may extend the time for such publication oi 
promulgation, but no such extension shall result in a delay of more 
than 6 months in promulgation. 

APPLICATION OP energy CONSERVATION PERFORMANCE STANDARDS FOl 

NEW BUILDINGS 

Sec. 305. (a) Subject to the provisions of subsection (c) and aftei 
the effective date of final performance standards for new commercial 
and residential buildings pursuant to section 304(a), no Federa: 
financial assistance shall be made available or approved with respect 
to the construction of any new commercial or residential building ir 
any area of any State, unless — 



1000 



pce 



k 



ENERGY CONSERVATION §30^ 

^»l (1) such State has certified, in accordance with regulations 

of the Secretary, that — 

(A) the unit of general purpose local government which 
has jurisdiction over such area has adopted and is imple- 

^ menting a building code, or other construction control mech- 

anism, which meets or exceeds the requirements of such final 
performance standards, or 

(B) such State has adopted and is implementing, on a 
statewide basis or with respect to such area, a building code 
or other laws or regulations which provide for the effective 
application of such final performance standards ; 

H (2) such new building has been determined, pursuant to any 

"^1 applicable approval process described in subsection (b) to be in 

compliance with such final performance standards ; or 
*'| (3) such new building is to be located in any area in which 

^"' the construction of new buildings is not of a magnitude to war- 
rant the costs of implementing final performance standards, as 
determined by the Secretary after receiving a request for such 
a determination (and material justifying such request) from the 
State in which the area is located ; except that the Secretary may 
rescind such a determination whenever the Secretary finds that 
the amount of construction of new buildings has increased in such 
area to an extent that such costs are warranted. 
The Secretary shall review and conduct such investigations as are 
Adeemed necessary to determine the accuracy of such certifications and 
-fshall provide for the periodic updating thereof. The Secretary may 
reject, disapprove, or require the witlidrawal of any such certification 
Rafter notice to such State and an opportunity for a hearing. 
'^ (b) (1) The provisions of this subsection shall not apply to any area 
^'subject to the jurisdiction of a unit of general purpose local government 
or of a State described in subsection (a) (1), and the provisions of this 
'^subsection and the approval process applicable under this subsection 
'^shall cease to apply to any area at such time as the Secretary receives a 
^"icertification under subsection (a)(1) with respect to such area. 
r (2) The Secretary shall have overall responsibility for the effective 
^"application of the applicable approval process described in this sub- 
section in any area not exempted therefrom pursuant to para- 
jlgraph (1). 

'^ (3) As used in this section, the term "approval process" means a 
'^mechanism and procedure for the consideration and approval of an 
'^application to construct a new building and which involves (A) deter- 
^' mining whether such proposed building would be in compliance with 
I the final performance standards for new buildings promulgated under 
[section 304, and (B) administration by the level and agency of gov- 
^ernment specified by the Secretary pursuant to paragraph (4). 

(4) The level and agency of government which shall administer the 
^approval process described in this subsection is — 

(A) first, the agency which grants building permits on behalf 
of the unit of general purpose local government which has juris- 
diction over the area m which new construction is proposed, if 
such agency is willing and able to administer such approval 
process ; 

(B) second, if the agency described in subparagraph (A) is not 
willing and able to administer such approval process, any other 



1001 



§307 ENERGY CONSERVATION 

agency of the unit of general purpose local government described 
in such paragraph which has authority to administer such ap- 
proval process, if such agency is willing and able to administer 
such approval process; and , ,,, 

(C) third, if no agency described in subparagraphs (A) and 
(B) IS willing and able to administer such approval process, any 
agency of the State in which new construction is proposed which 
has authority to administer such approval process, if such agency 
is willing and able to administer such approval process, 
(c) The President shall transmit the final performance standards for 
new buildings to both Houses of Congress upon the date of promulga- 
tion of such standards pursuant to section 304(a), for review by the 
Congress under this subsection to determine whether the sanction set 
forth in the introductory clause to subsection (a) is necessary and 
appropriate to assure that such standards are in fact applied to all new 
buildings. Such sanction shall be deemed approved as necessary for 
such purpose (and shall thereafter be enforced, directly and indirectly, 
by each applicable person and governmental entity) if the use of such 
sanction is approved by a resolution of each House of Congress in 
accordance with the procedures specified in section 552 of the Energy 
Policy and Conservation Act; except that for purposes of this section 
the 60 calendar days described in section 552 (b) and (c) (2) of such 
Act shall be lengthened to 90 calendar days. 

FEDERAL BUILDINGS 

Sec. 306. The head of each Federal agency responsible for the con- 
struction of any Federal building shall adopt such procedures as may 
be necessary to" assure that any such construction meets or exceeds the 
applicable final performance standards promulgated pursuant to this 
t&le. I 

GRANTS I 

Sec. 307. (a) The Secretary may make grants to States and units of \ 
general purpose local government to assist them in meeting the costs of 
adopting and implementing performance standards or of administer- 
ing State certification procedures or any applicable approval process 
to carry out the provisions of section 305. 

(b) 1 There is authorized to be appropriated, for the purpose of 
carrying out this section, the following amounts — 

(1) for the fiscal year ending September 30, 1977, not to exceed 
$5,000,000; 

(2) for the fiscal year ending September 30, 1978, not to exceed 
$10,000,000; and 

(3) for the fiscal year ending September 30, 1979, not to exceed 
$10,000,000. 

Any amount appropriated pursuant to this subsection shall remain - 
available until expended. 



n'> ^fTf ^Inp^^o^^^^' ^3\t^**^*??^^J^^.'*^ Conservation Policy Act, Public Law 95-Jei9, 

^^ht i^w?^,'o^oPP.l^''^ November 9, 1978. The subsection formerly read as follows: 
,.JL JiJl}W^}^^^^^%^J^ ^? appropriated for the purpose of carrying out this section, 
S?onHfltS'^in;^r?.^V^^?J'''* ^S^ ^',^^1 y^^^ «^di^S September 30. 1977 Any amount ap- 
propriated pursuant to this subsection shall remain available until expended. 



1002 



ENERGY CONSERVATION §308 

TECHNICAL ASSISTANCE 

Sec. 308. The Secretary (directly, by contract, or otherwise) may 
provide technical assistance to States and units of general purpose 
;ocal o-overnment to assist them in meeting the requirements of this 
sitle. 

CONSULTATION WITH INTERESTED AND AFFECTED GROUPS 

Sec. 309. In developing and promulgating performance standards 
ind carrying out other functions imder this title, the Secretary shall 
consult with appropriate representatives of the building community 
(including representatives of labor and the construction industry, 
mgineers, and architects), with appropriate public officials and 
organizations of public officials, and with representatives of consumer 
croups. For purposes of such consultation, the Secretary shall, to the 
Bxtent practicable, make use of the National Institute of Building 
Sciences. The Secretary may also establish one or more advisory com- 
mittee as may be appropirate. Any advisory committee or committees 
established pursuant to this section shall be subject to the provisions 
oi the Federal Advisory Committee Act. 

SUPPORT ACTIVITIES 

Sec. 310. The Secretary, in cooperation with the Administrator, the 
Secretary of Commerce utilizing the services of the Director of the 
N'ational Bureau of Standards, and the heads of other appropriate 
Federal agencies, and the National Institute of Building Sciences, 
shall carry out any activities which the Secretary determines may be 
Qecessary or appropriate to assist in the development of performance 
otandards under section 304(a) and to facilitate the implementation 
of such standards by St-ate and local governments. Such activities 
shall be designed to assure that such standards are adequately analyzed 
in terms of energy efficiency, stimulation of use of nondepletable 
sources of energy, institutional resources, habitability, economic cost 
and benefit, and impact upon affected groups. 

jMONITORINa OP STATE AND LOCAL ADOPTION OP ENERGY CONSERVATION 
STANDARDS FOR BUILDINGS 

Sec. 311. The Secretary, with the advice and assistance of the 
National Institute of Building Sciences, shall — 

(1) monitor the progress made by the States and their political 
subdivisions in adopting and enforcing energy conservation 
standards for new buildings; 

(2) identify any procedural obstacles or technical constraints 
inhibiting implementation of such standards ; 

(3) evaluate the elffectiveness of such prevailing standards; 
and 

(4) within 12 months after the date of enactment of this title, 
and semiannually thereafter, report to the Congress on (A) the 
progress of the States apd units of general purpose local govern- 
ment in adopting and implementing energy conservation stand- 
ards for new buildings, and (B) the effectiveness of such 
standards. 

1003 . 



§401 ENERGY CONSERVATION 

TITLE IV— ENERGY CONSERVATIOlSr AKD RENEWABLE- i 
RESOURCE ASSISTANCE FOR EXISTING BUILDINGS 

SHORT TITLE 

Sec. 401. This title may be cited as the "Energy Conservation in 
Existing Buildings Act of 1976". 

FINDINGS AND PURPOSE 

Sec. 402. (a) The Congress finds that— 

(1) the fastest, most cost-effective, and most environmentally 
sound way to prevent future energy shortages in the United 
States, while reducing the Nation's dependence on imported 
energy supplies, is to encourage and facilitate, through major 
programs, the implementation of energy conservation and renew- 
able-resource energy measures with respect to dwelling units, non- 
residential buildings, and industrial plants ; 

(2) current efforts to encourage and facilitate such measures 
are inadequate as a consequence of — 

(A) a lack of adequate and available financing for such 
measures, particularly with respect to individual consumers 
and owners of small businesses ; 

(B) a shortage of reliable and impartial information and 
advisory services pertaining to practicable energy conserva- 
tion measures and renewable-resource energy measures and 
the cost savings that are likely if they are implemented in 
such units, buildings, and plants ; and 

(C) the absence of organized programs which, if they 
existed, would enable consumers, especially individuals and 
owners of small businesses, to undertake such measures easily 
and with confidence in their economic value ; 

(3) major programs of financial incentives and assistance for 
energy conservation measures and renewable-resource energy 
measures in dwelling units, nonresidential buildings, and indus- 
trial plants would — 

(A) significantly reduce the Nation's demand for energy 
and the need for petroleum imports ; 

(B) cushion the adverse impact of the high price of energy 
supplies on consumers, particularly elderly and handicapped 
low-income persons who cannot afford to make the modifica- 
tions necessary to reduce their residential energy use ; and 

(C) increase, directly and indirectly, job opportunities and 
national economic output; 

(4) the primary responsibility for the implementation of such 
major programs should be lodged with the governments of the 
States ; the diversity of conditions among the various States and 
regions of the Nation is sufficiently great that a wholly federally 
administered program would not be as effective as one which is 
tailored to meet local requirements and to respond to local oppor- 
tunities; the State should be allowed flexibility within which to 
fashion such programs, subject to general Federal guidelines and 
monitoring sufficient to protect the financal investments of con- 
sumers and the financial interest of the United States and to 

1004 



ENERGY COXSERVATIOX I §411 

insure that the measures undertaken in fact result in significai^t 
energy and cost savings which would probably not otherwise 
occur; 

(5) to the extent that direct Federal administration is more 
economical and efficient, direct Federal financial incentives and 
assistance should be extended through existing and proven Fed- 
eral programs rather than through new programs that would 
necessitate new and separate administrative bureaucracies; and 

(6) such programs should be designed and administered to 
supplement, and not to supplant or in any other way conflict with, 

y| State energy conservation programs under part C of title III of 
the Energ}^ Policy and Conservation Act : the emergency energ^^ 
conservation pro-am carried out by community action agencies 
pursuant to section 222(a) (12) of the Economic Opportunity 
Act of 1964 ; and other forms of assistance and encouragement for 
I energy conservation. 
' (b) It is, therefore, the purpose of this title to encourage and facili- 
tate the implementation of energy conservation measures and renew- 
able-resource energy measures in dwelling units, nonresidential build- 
ings, and industrial plants, through — 

(1) supplemental State energy conservation plans; and 

(2) Federal financial incentives and assistance. 

Part A — Weatherizatiox Assistance for Low-Income Persons 

FINDINGS AND PURPOSE 

Sec. 411. (a) The Congress finds that — 

(1) dwellings owned or occupied by low-income persons fre- 
quently are inadequately insulated ; 

(2) low-income persons, particularly elderly and handicapped 
low-income persons, can least afford to make the modifications 
necessary to provide for adequate insulation in such dwellings 
and to otherwise reduce residential energy use ; 

(3) weatherization of such dwellings would lower utility ex- 
penses for such low-income owners or occupants as well as save 
thousands of barrels per day of needed fuel ; and 

(4) States, through community action agencies established 
under the Economic Opportunity Act of 1964 and units of general 
purpose local government, should be encouraged, with Federal 
financial and technical assistance, to, develop and support coor- 
dinated weatherization programs designed to ameliorate the 
adverse effects of high energy costs on such low-income persons, 
to supplement other Federal programs serving such persons, and 
to conserve energy. 

(b) It is, therefore, the purpose of this part to develop and imple- 
ment a supplementary weatherization assistance program to assist in 
achieving a prescribed level of insulation in the dwellings of low- 
income persons, particularly elderly and handicapped low-income 
persons, in order both to aid those persons least able to afford higher 
utility costs and to conserve needed energy. 

DEFINITIONS 

Sec. 412. As used in this part : 

(1) The term "Administrator" means the Administrator of the 

1005 



411 ENERGY CONSERVATION 

Federal Energy Administration; except that after such Admin- 
istration ceases to exist, such term means any officer of the United 
States designated by the President for purposes of this j^^art. 

(2) The term "Director" means the Director of the Community 
Services Administration. 

(3) The term "elderly" means any individual who is 60 years 
of age or older. 

(4) The term "Governor" means the chief executive officer of 
a State (including the Mayor of the District of Columbia). 

(5) The term "handicapped person" means any individual (A) 
who is a handicapped individual as defined in section 7(6) of 
the Eehabilitation Act of 1973, (B) who is under a disability as 
defined in section 1614(a)(3)(A) or 223(d)(1) of the Social 
Security Act or in section 102(7) of the Developmental Disabili- 
ties Services and Facilities Construction Act, or (C) who is 
receiving benefits under chapter 11 or 15 of title 38, United States 
Code. 

(6) The terms "Indian", "Indian tribe", and "tribal organi- 
zation" have the meanings prescribed for such terms by para- 
graphs (4), (5), and (6), respectively, of section 102 of the Older 
Americans Act of 1965. 

(7) The term "low-income" means that income in relation to 
family size which (A) is at or below 25 percent of ^ the poverty 
level determined in accordance with criteria established by the 
Director of the Office of Management and Budget, except that 
the Administrator may establish a higher level if the Administra- \i 
tor, after consulting with the Secretary of Agriculture and the 
Director of the Community Services Administration, determines 
that such a higher level is necessary to carry out the purposes of 
this part and is consistent with the eligibility criteria established igj 
for the weatherization program under section 222(a) (12) of them 
Economic Opportunity Act of 1964,^ or (B) is the basis on which f, 
cash assistance payments have been paid during the preceding nj 
12-month period under titles IV and XVI of the Social Security ,g( 
Act or applicable State or local law. 

(8) The term "State" means each of the States and the Dis- 
trict of Columbia. 

(9)^ The term "weatherization materials" means — 

(A) caulking and weatherstripping of doors and windows; 

(B) furnace efficiency modifications limited to — 

(i) replacement burners designed to substantially in- 
crease energy efficiency of the heating system, 

(ii) devices for modifying flue openings which will' 
increase the energy efficiency of the heating system, and 

(iii) electrical or mechanical furnace ignition sys- 
tems which replace standing gas pilot lights ; 

(C) clock thermostats ; 

(D) ceiling, attic, wall, floor, and duct insulation; 

(E) water heater insulation ; 

(F) storm windows and doors, multiglazed windows and 



1 AmendPfi by Sec. 2Sl(aK National Knersry Conservation Policy Act of 1978. Public Law 
95-619, 92 Stat. 3224, approved November 9, 1978. 

-Amended by Sec. 231(b), National Energy Conservation Policy Act of 1978, Public Law 
95-619, 92 Stat. 3224, approved November 9, 1978. 

1006 



ENERGY OOXSERVATIOX §413 

doors, heat-absorbing or heat-reflective window and door 
materials; and 

(G) such other insulating or energy conserving devices 
or technologies as the Administrator may determine, by rule, 
after consulting with the Secretary of Housing and Urban 
Development, the Secretary of Agriculture, and the Director 
of the Community Services Administration. 

WBATHERIZATTON PROGRAM 

i Sec. 413. (a) The Administrator shall develop and conduct, in ac- 
s iordance with the purpose and provisions of this part, a weatherization 
il Drogram. In developing and conducting such program, the Adminis- 
' ,rator may, in accordance with this part and regulations promulgated 
^ inder this part, make gi-ants (1) to States, and (2) in accordance 
*^th the provisions of subsection (d), to Indian tribal organizations 
x> serve Native Americans. Such grants shall be made for the purpose 

* )f providing financial assistance with regard to projects designed to 
^" Drovide for the weatherization of dwelling units, particularly those 
f vhere elderly or handicapped low-income persons reside, occupied by 

ilow-income ^ families. 

^ (b) (1) The Administrator, after consultation with the Director, 
^ he Secretary of Housing and Urban Development, the Secretary of 
^ Health, Education, and Welfare, the Secretary of Labor, the Director 

* of the ACTION Agency, and the heads of such other Federal depart- 
nents and agencies as the Administrator deems appropriate, shall 

' levelop and publish in the Federal Register for public comment, not 
; ater than 60 days after the date of enactment of this part, proposed 
I -egulations to carry out the provisions of this part. The Administrator 
'hall take into consideration comments submitted regarding such pro- 
^|)osed regulations and shall promulgate and publish final regulations 
•'or such purpose not later than 90 days after the date of such enact- 
[ Qent. The development of regulations under this part shall be fully 
'coordinated with the Director. 
I (2) The reflations promulgated pursuant to this section shall 

* nclude provisions — 

(A) prescribing, in coordination with the Secretary of Hous- 
ing and Urban Development, the Secretary of Health, Education, 
and Welfare, and the Director of the National Bureau of Stand- 
ards in the Department of Commerce, for use in various climatic, 
structural, and human need settings, standards for weatherization 
materials, energy conservation techniques, and balanced com- 
binations thereof, which are designed to achieve a balance of 
a healthful dwelling environment and maximum practicable 
energy conservation ; and 

(B) designed to insure that (i) the benefits of weatherization 
assistance in connection with leased dwelling units will accrue 
primarily to low-income tenants; (ii) the rents on such dwelling 
units will not be raised because of any increase in the value 
thereof due solely to weatherization assistance provided under 
this part; and (iii) no undue or excessive enhancement will occur 
to the value of such dwelling units. 



1 Amended by Sec. 231(a), National Energy Conservation Policy Act of 1978, Public 
.aw 95-619. 92 Stat. 3224. approved November 9, 1978. 

1007 



§413 ENERGY CONSERVATION 

(3)1 The Administrator, in coordination with the Secretaries an' 
Director described in paragraph (2) (A) and with the Director of th 
Community Services Administration and the Secretary of Agricu] 
ture, shall develop and publish in the Federal Register for publi 
comment, not later than 60 days after the date of enactment of thi 
paragraph, proposed amendments to the regulations prescribed unde 
paragraph (1). Such amendments shall provide that the standard 
described in paragraph (2) (A) shall include a set of procedures to b 
applied to each dwelling unit to determine the optimum set of cost 
effective measures, within the cost guidelines set for the program, to b 
installed in such dwelling unit. Such standards shall, in order t 
achieve such optimum savings of energy, take into consideration th 
following factors — 

(A) the cost of the weatherization material; 

(B) variation in climate ; and 

( C ) the value of energy saved by the application of the weather j 
ization material. 

Such standards shall be utilized by the Administrator in carrying ou; 
this part, the Secretary of Agriculture in carrying out the weatheriza 
tion program under section 504(c) of the Housing Act of 1949, and tb' 
Director^ of the Community Services Administration in carrying ou 
weatherization programs under section 222(a) (12) of the Economi' 
Opportunity Act of 1964. The Administrator shall take into considera 
tion comments submitted regarding such proposed amendment an( 
shall promulgate and publish final amended regulations not later thai 
120 days after the date of enactment of this paragraph. 

(c) If a State does not, within 90 days after the date on which finaj ^ 
regulations are promulgated under this section, submit an aj)plicatioi 
to the Administrator which meets the requirements set forth in sectioi 
414, any unit of general purpose local government of sufficient size (a, 
-determined by the Administrator), or a community action agency 
-carrying out proems under title II of the Economic Opportunity 
Act of 1964, may, in lieu of such State, submit an application (meetini 
such requirements and subject to all other provisions of this part) fo 
■carrying out projects under this part within the geographical arej 
which is subject to the jurisdiction of such government or is served b] 
such agency. If any such application submitted by a unit of genera 
purpose local government proposes that the allocation requiremen 
and the priority for an applicable community action agency, as se 
forth under section 415(b) (2) (B), be determined to be no longer ap 
plicable, the Administrator, as part of the notice and public hearing 
procedure carried out under section 418 with respect to such applica 
tion, shall be responsible for making the necessary determination unde: 
the proviso in section 415(b) (2) (B). A State may, in accordance witl 
regulations promulgated under this part, submit an amendec 
application. 

(d)(1) Notwithstanding any other provision of this part, in an^ 
State in which the Administrator determines (after having taken irrt< 
account the amount of funds made available to the State to carry oui 
the purposes of this part) that the low-income members of an Indiai 
tribe are not receiving benefits under this part that are equivalent t( 
the assistance provided to other low-income persons in such State unde: 
this part, and if he further determines that the members of such trib< 

1 Added by Sec. 231(b), National Energy Conservation Policy Act, Public Law 95-619 
92 Stat. 3227, approved November 9, 1978. 

1008 



ENERGY CONSERVATION §414 

cwould be better served by means of a grant made directly to provide 
«3uch assistance, he shall reserve from sums that would otherwise be 
allocated to such State under this part not less than 100 percent, nor 
cmore than 150 percent, of an amount which bears the same ratio to the 
'State's allocation for the fiscal year involved as the population of all 
How-income Indians for whom a determination under this subsection 
•has been made bears to the population of all low-income persons in 
:3uch State. 

. (2) The sums reserved by the Administrator on the basis of his 
determination under this subsection shall be granted to the tribal 
organization serving the individuals for whom such a determination 
ihas been made, or. where there is no tribal organization, to such other 
sntity as he determines has the capacity to provide services pursuant 
to this part. 

(3) In order for a tribal organization or other entity to be eligible 
.for a grant for a fiscal year under this subsection, it shall submit to 
the Administrator an application meeting the requirements set forth 
)in section 414. 

. (e) Notwithstandinrr any other provision of law, the Administratol 
cmay transfer to the Director sums appropriated under this part to be 
jutilized in order to carry out programs, under section 222 (a) (12) of 
,the Economic Opportunity Act of 1964, which further the purpose of 
this part. 

i FINANCIAL ASSISTANCE 

' Sec. 414. (a) The Administrator shall provide financial assistance^ 
from sums appropriated for any fiscal year under this part, only upon 
'annual application. Each such application shall describe the estimated 
^number and cliaracteristics of the low-income persons and the number 
k)f dwelling units to be assisted and the criteria and methods to be used 
by the applicant in providing weatherization assistance to such per- 
'sons. The application shall also contain such other information (in- 
cluding information needed for evaluation purposes) and assurances 
ias may be required (1) in the regulations promulgated pursuant to 
'section 413 and (2) to carry out this section. The Administrator shall 
allocate financial assistance to each State on the basis of the relative 
need for weatherization assistance among low-income persons through- 
out the States, taking into account the following factors : 

(A) The number of dwelling units to be weatherized. 

(B) The climatic conditions in the State respecting energy 
conservation, which may include consideration of annual degree 
days. 

(C) The type of weatherization work to be done in the various 
settings. 

(D) Such other factors as the Administrator may determine 
necessary in order to carry out the purpose and provisions of this 
part. 

(b) The Administrator shall not provide financial assistance under 
this part unless the applicant has provided reasonable assurances that 
it has — 

(1) established a policy advisory council which (A) has special 
qualifications and sensitivity with'respect to solving the problems 
of low-income persons (including the weatherization and energy- 
conservation problems of such persons), (B) is broadly repre- 
sentative of organizations and agencies which are providing 

1009 



§415 



ENERGY CONSERVATION 



services to such persons in the State or geographical areas in que.* 
tion, and (C) is responsible for advising the responsible officii 
or agency administering the allocation of financial assistance i 
' such State or area with respect to the development and impL 
mentation of such weatherization assistance program ; 

(2) established priorities to govern the provision of weatheriza 
tion assistance to low-income persons, including methods to pre 
vide priority to elderly and handicapped low-income persons, an- 
such priority as the applicant determines is appropriate fo 
single-family or other high-energy-consuming dwelling units 
and 

(3) established policies and procedures designed to assure tha 
financial assistance provided under this part will be used to sup 
plement, and not to supplant. State or local funds, and, to th 
extent practicable, to increase the amounts of such funds tha 
would be made available in the absence of Federal funds for cai 
rying out the purposes of this part, including plans and procedure 
(A) for securing, to the maximum extent practicable, the service 
of volunteers and training participants and public service employ 
ment workers, pursuant to the Comprehensive Employment an< 
Training Act of 1973, to work under the supervision of qualifie< 
supervisors and foremen, and (B) for complying with the limita 
tions set forth in section 415. 

LIMITATIONS 

Sec. 415. (a) Financial assistance provided imder this part shall, tiij 
the maximum extent practicable as determined by the Administrator 
be used for the purchase of weatherization materials and related matte 
described in subsection (c) , except that not more than 5 percent of an; 
grant made pursuant to section 413(a) and not more than 5 percent o 
any amount allocated under this section may be used for administratioi 
in carrying out duties under this part.^ 

(b) The Administrator shall insure that financial assistance pro^: 
vided under this part will — ^ I 

(1) be allocated within the State or area in accordance with t 
published State or area plan, which is adopted by such State aftej 
notice and a public hearing, describing the proposed funding dis^ 
tributions and recipients ; i 

(2) be allocated, pursuant to such State or area plan, to com 
munity action agencies carrying out programs under title II o: 
the Economic Opportunity Act of 1964 or to other appropriati, 
and qualified public or nonprofit entities in such State or area Sd 
that— 

(A) funds will be allocated on the basis of the relative neec 
for weatherization assistance among the low-income personi| 
within such State or area, taking into account appropriate cli | 
matic and energy conservation factors ; "I 

(B) (i) funds to be allocated for carrying out weatheriza 
tion projects under this part in the geographical area serveci 
by the emergency energy conservation program carried oui 
by a community action agency under section 222(a) (12) o:| 
the Economic Opportunity Act of 1964 will be allocated U 

1 Amended by Sec. 231(c), National Energy Conservation Policy Act. Public Law 95-619,1 
92 Stat. 3206, approved November 9, 1978. 

1010 



ENERGY CONSERVATION §416 

51 such agency, and (ii) priority in the allocation of such funds 

af for carrying out such projects under this part will be given 

in such a community action agency in so much of the geographi- 

* cal areas served by it as is not served by the emergency energy 

conservation program it is carrying out : Provided^ That such 
i allocation requirement and such priority shall no longer apply 

^« if the Governor of a State preparing an application for finan- 

MJ cial assistance under this part makes a determination, on 

"I the basis of the public hearing required by paragraph (1) of 

this subsection, or if the Administrator makes a determina- 
tion, on the basis of a public hearing pursuant to se<:tion 413 
3(c), that the emergency energy conservation program carried 
out by such agency has been ineffective in meeting the purpose 
of this part or is clearly not of sufficient size, and cannot in 
ii| timely fashion develop the capacity, to support the scope of 

Jr| the project to be carried out in such area with funds under 

this part ; and 

(C) due consideration will be given to the results of peri- 
odic evaluations of the projects carried out under this part 
dJ in light of available information regarding the current and 

eq anticipated energy and weatherization needs of low-income 

:i- persons within the State ; and 

(3) be terminated or discontinued during the application period 
only in accordance with policies and procedures consistent with 
the policies and procedures set forth in section 418. 
j(j (c)^(l) Except a.s provided in paragraph (2). not more than S800 
\.3i any financial assistance provided under this part may be expended 
.;jwith respect to weatherization materials and the following related 
.^Tiatters for any dwelling unit — 

(A) the appropriate portion of the c-ost of tools and equip- 
ment used to install Rich materials for such unit: 

(B) the cost of transporting labor, tools, and material to such 
unit ; 

^ fC) the cost of having onsite supervisory personnel; and 

(D) the cost (not to exceed $100) of making incidential repaii-s 
^ to such unit if such repaii^ are necessan- to make the installation 
J^ of weatherization materials effective. 

> (2) The limitation of SSOO descrilied in paragraph (1) shall not 
^ ipply if the State policy advisors' council, established pursuant to 
"".ection 414 (b) (1). requests tho Administrator to provide for a greater 
Amount with respect to specific categories of units or materials in the 
-i%ate. and the Administrator approves such request. 

MONITORIXG, TECHNICAL ASSISTANCE, AND EVALUATION 

^ Sec 416. The Administrator, in coordination with the Director, 
rishaJl monitor and evaluate the operation of projects receiving financial 
:-assistance under this part through methods provided for in section 
417(a), through onsite inspections, or through other means, in order 
j-to assure the effective provision of weatherization assistance for the 
eJdwelling units of low-income persons. The Administrator shall also 
:^carry out periodic evaluations of the program authorized by this part 
tand projects receiving financial assistance under this part. The Admin- 
:o<istrator may provide technical assistance to any such project, directly 



1 Amended by Sec. 231(c). National Energy Conservation Policy Act, PubUc Law 95-619, 
92 Stat. 3206, approved November 9, 1978. 

1011 



§419 ENERGY CONSERVATION 

I 
and through persons and entities with a demonstrated capacity 
developing and implementing appropriate technology for enhanci] 
the effectiveness of the provision of weatherization assistance to t 
dwelling units of low-income persons, utilizing in any fiscal year n 
to exceed 10 percent of the sums appropriated for such year und 
this part. 

ADMINISTRATIVE PROVISIONS 

Sec. 417. (a) The Administrator, in consultation with the Directc i,]^ 
by general or special orders, may require any recipient of financi 
assistance under this part to provide, in such form as he may prescril 
such reports or answers in writing to specific questions, surveys, &J| 

Juestionnaires as may be necessary to enable the Administrator and t 
)irector to carry out their functions under this part. 

(b) Each person responsible for the administration of a weatheriz 
tion assistance project receiving financial assistance under this pa 
shall keep such records as the Administrator may prescribe in ord 
to assure an effective financial audit and performance evaluation 
such project. 

(c) The Administrator, the Director (with respect to corrununi 
action agencies) , and the Comptroller General of the United States, ■ 
any of their duly authorized representatives, shall have access for t^ 
purpose of audit and examination to any books, documents, papei, 
information, and records of any project receiving financial assistant 
under this part that are pertinent to the financial assistance receive ; 
under this part. 

(d) Payments under this part may be made in installments and l 
advance, or by way of reimbursement, with necessary adjustments < 
account of overpayments or underpayments. 



APPROVAL OF APPLICATIONS AND ADMINISTRATION OF STATE PROGRAMi 

Sec. 418. (a) The Administrator shall not finally disapprove ai: 
application submitted under this part, or any amendment theret 
without first affording the State (or unit of general purpose local go\ 
emment or community action agency under section 413(c), as appn 
priate) in question, as well as other interested parties, reasonable noti( 
and an opportunity for a public hearing. The Administrator may coi 
solidate into a single hearing the consideration of more than one sue 
application for a particular fiscal year to carry out projects withi 
a particular State. Whenever the Administrator, after reasonabj 
notice and an opportunity for a public hearing, finds that there is 
failure to comply substantially with the provisions of this pert ( 
regulations promulgated under this part, he shall notify the agenc 
or institution involved and other interested parties that such Stat 
(or unit of general purpose local government or agency, as appropr 
ate) will no longer be eligible to participate in the program under thi 
part until the Administrator is satisfied that there is no longer an 
such failure to comply. 

(b) Keasonable notice under this section shall include a writte: 
notice of intention to act adversely (including a statement of th 
reasons therefor) and a reasonable period of time within which t 
submit corrective amendments to the application, or to propose cof 
rectivc action. 



1012 



01 



ENERGY CONSERVATION §431 



JUDICIAL REVIEW 



:iri 

tl Sec. 419. (a) If any applicant is dissatisfied with the Administra- 
tis tor's final action with respect to the application submitted by it undfir 
!♦ section 414 or with a final action under section 418, such applicant may, 
within 60 days after notice of such action, file with the United States 
court of appeals for the circuit in which the State involved is located 
. a petition for review of that action. A copy of the petition shall be 
f forthwith transmitted by the clerk of the court to the Administrator. 
J'The Administrator thereupon shall file in the court the record of the 
'^proceedin-rrs on which he based his action, as provided in section 2112 
• jof title 28, United States Code. 

^ (b) The findings of fact by the Administrator, if supported by sub- 
. stantial evidence, shall be conclusive. The court may, for good cause 
•^'shown, remand the case to the Administrator to take further evidence, 
f and the Administrator may thereupon make new or modified findings 
^*of fact and may modify his previous action. The Administrator shall 
'**certify to tho court the record of any such further proceedings. Such 
, new or modified findinirs of fact shall likewise be conclusive if sup- 
ported by substantial evidence. 

'J (c) The court shall have jurisdiction to affirm the action of the 
^^Administrator or to set it aside, in whole or in part. The judgment 
'^of the court shall be subject to review by the Supreme Court of the 
■^''United States upon certiorari or certification, as provided in section 
'^254 of title 28, United States Code. 

ii nondiscrimination 

I Sec. 420. (a) No person in the United States shall, on the ground 
of race, color, national origin, or sex, or on the ground of any other 
^factor specified in any Federal law prohibiting discrimination, be 
excluded from participation in, be denied the benefits of, or be sub- 
jfljected to discrimination under any program, project, or activity sup- 
etoported in whole or in part with financial assistance under this part. 
ofl (b) Whenever the Administrator determines that a recipient of 
•i^nancial assistance under this part lias failed to comply with sub- 
iffSection (a) or any applicable regulation, he shall notify the recipient 
3u:hereof in order to secure compliance. If, within a reasonable period 
jfpf time thereafter, such recipient fails to comply, the Administrator 
jiiiphall — 

(1) refer the matter to the Attorney General with a recom- 
mendation that an appropriate civil action be instituted ; 

(2) exercise the power and functions provided by title VI of 
the Civil Kights Act of 1964 and any other applicable Federal 
nondiscrimination law ; or 

(3) take such other action as may be authorized by law. 

jjj ANNUAL REPORT 

Sec. 421. The Administrator and (with respect to the operation and 
^effectiveness of activities carried out through community action 
j^.gencies) the Director shall each submit, on or before March 31, 1977, 
_^nd annually thereafter through 1979, a report to the Congress and 
^e President describing the weatherization assistance program carried 
'Ut under this part or any other provision of law, including the results 

1013 



§431 ENERGY CONSERVATION 

of the periodic evaluations and monitoring activities required by sei 
tion 416. 

AUTHORIZATION OF APPROPRIATIONS 

Sec. 422.1 There are authorized to be appropriated for purposes f 
carrying out the weatherization program under this part, not to excec 
$55,000,000 for the fiscal year endinsr September 80, 19^7, not to excec 
$180,000,000 for the fiscal year ending: September 80, 1978, not to excee 
$200,000,000 for the fiscal year endinsr September 30. 1979, and not 1 
exceed $200,000,000 for the fiscal year ending September 30, 1980, sue 
sums to remain available until expended. 

Part B — State Energy Conservation Plans 
definitions 

Sec. 431. Section 366 of the Energy Policy and Conservation Act i 
amended by (1) redesignating paragraphs (1) and (2) as paragraph) 
(7) and (8), respectively; and (2) inserting after "As used in thiii 
part — " the following new paragraphs : 

"(1) The term 'appliance' means any article, such as a roon 
air-conditioner, refrigerator- freezer, or dishwasher, which the 
Administrator classifies as an appliance for purposes of this pari 
"(2) The term 'building' means any structure which include 
provision for a heating or cooling system, or both, or for a ho 
water system. 

"(3) The term 'energy audit' means any process which identi 
fies and specifies the energy and cost savings which are likely t( 
be realized through the purchase and installation of particula: 
energy conservation measures or renewable-resource energy meas 
ures and which — I 

" ( A) is carried out in accordance with rules of the Admin ] 
istrator; and 
"(B) imposes — 

" (i) no direct costs, with respect to individuals who art 
occupants of dwelling units in any State having a supple 
mental State energy conservation plan approved undei 
section 367, and 

"(ii) only reasonable costs, as determined by the Ad 
ministrator, with respect to any person not described ir 
clause (i). 
Rules referred to in subparagraph (A) may include minimuir 
qualifications for, and provisions with respect to conflicts of inter- 
est of, persons carrying out such energy audits. 

" (4) The term 'energy conservation measure' means a measure 
which modifies any building or industrial plant, the construction 
of which has been completed prior to the date of enactment oi 
the Energy Conservation and Production Act, if such measure 
has been determined by means of an energy audit or by the 
Administrator, by rule under section 365(e) (1), to be likely tc 
improve the efficiency of energy use and to reduce energy costs 
(as calculated on the basis of energy costs reasonably projected 
over t ime, as determined by the Administrator) in an amount 

1014 



ENERGY CONSERVATION §432 

sufficient to enable a person to recover the total cost of purchasing 
and installing such measure (without regard to any tax benefit 
or Federal financial assistance applicable thereto) within the 
period of — 

"(A) the useful life of the modification involved, as 
determiTied by the Administrator, or 

"(B) 15 years after the purchase and installation of such 
measure, 
whichever is less. Such term does not include (i) the purchase or 
installation of any appliance, (ii) any conversion from one fuel 
or source of energy to another which is of a type which the 
Administrator, by rule, determines is ineligible on the basis that 
such type of conversion is inconsistent with national policy with 
respect to energy conservation or reduction of imports of fuels, 
or (iii) any measure, or type of measure, which the Adminis- 
trator determines does not have as its primary purpose an im- 
provement in efficiency of energv use. 

"(5) The term 'industrial plant' means any fixed equipment or 
facility which is used in connection with, or as part of, any 
process or system for industrial production or output. 

"(6) The term 'renewable-resource energy measure' means a 

measure which modifies any building or industrial plant, the 

construction of which has been completed prior to the date of 

enactment of the Energy Conservation and Production Act, if 

such measure has been determined by means of an ener^ audit 

or by the Administrator, by rule under section 365(e)(1), to — 

"(A) involve changing, in whole or in part, the fuel or 

source of the energy used to meet the requirements of such 

building or plant from a depletable source of energy to a 

nondepletable source of energy ; and 

"(B) be likely to reduce energy costs (as calculated on. 
the basis of energy costs reasonably projected over time, as 
determined by tlie Administrator) in an amount sufficient 
to enable a person to recover the total cost of purchasing and 
installing such measure (without regard to any tax benefit 
or Federal financial assistance applicable thereto) within the 
period of — 

"(i) the useful life of the modification involved^ 
as determined by the Administrator, or 

"(ii) 25 years after the purchase and installation of 
such measure, 
whichever is less. 
Such term does not include the purchase or installation of any 
appliance.". 

SUPPLEMENTAL STATE ENERGY CONSERVATION PLANS 

Sec. 432. (a) Part C of title 3 of the Energy Policy and Conser- 
vation Act is amended by adding at the end thereof the following new 
section : 

"SITPPLEMEI^TAL STATE ENERGY CONSERVATION PLANS 

"Seo. 367. (a)(1) The Administrator shall, within 6 months after 
the date of enactment of the Energy Conservation and Production Act, 

1015 



§432 



ENERGY CONSERVATION 



prescribed guidelines with respect to measures required to be included j 
in, and guidelines for the development, modification, and fimding of 
supplemental State energy conservation plans. Such guidelines Sialic 
include the provisions of one or more model supplemental State energy^ 
conservation plans with respect to the requirements of this section. 

"(2) In prescribing such guidelines, the Administrator shall solicit 
and consider the recommendations of, and be available to consult with^ 
the Governors of the States as to such guidelines. At least 60 days prior 
to the date of final publication of such guidelines, the Administrator- 
shall publish proposed guidelines in the Federal Register and invite- 
public comments thereon. 

"(3) The Administrator shall invite the Governor of each State to. 
submit to the Administrator a proposed supplemental State energy 
conservation plan which meets the requirements of subsection (b) and. 
any guidelines applicable thereto. 

"(4) The Admmistrator may prescribe rules applicable to supple- 
mental State energy conservation plans under this section pursuantt. 
to which — 

" ( A) a State may apply for and receive assistance for a supple- 
mental State energy conservation plan under this section ; and 
"(B) such plan under this section may be administered; 
as if such plan was a part of the State energy conservation plan pro- 
gram under section 362. Such rules shall not have the effect of delaying; 
funding of the program under section 362. 

"(5) Section 363(b) (2) (A), the last sentence of section 363(b) (2),. 
section 363(b) (3), and section 363(c) shall apply to the supplemental 
State energy conservation plans to the same extent as such provisions: 
apply to State energy conservation plans. 

"(6) The Administrator may grant Federal financial assistance 
pursuant to this section for the purpose of assisting any State in the 
development of any supplemental State energy conservation plan or 
in the implementation or modificaticm of such a plan or part thereof 
which has been submitted to and approved by the Administrator 
pursuant to this section. 

"(b)(1) Each proposed supplemental State energy conservation 
plan to be eligible for Federal financial assistance under this section 
shall include — 

" ( A) procedures for carrying out a continuing public education 
effort to increase significantly public awaren^s of — 

"(i) the energy and cost savings which are likely to result 
from the implementation (including implementation through 
group efforts) of energy conservation measures and renew- 
able-resource energy measures ; and 

"(ii) inforniation and other assistance (including informa- 
tion as to available technical assistance) which is or may be 
available with respect to the planning, financing, installing,, 
and with respect to monitoring the effectiveness of measures:, 
likely to conserve, or improve efficiency in the use of, energy,, 
including energy conservation measures and renewable- 
resource energy measures ; 
"(B) procedures for insuring that effective coordination exists, 
among various local, State, and Federal energy conservation pro- 
grams within and affecting such State, including any energy 
extension service program administered by the Energy Research, 
and Development Administration ; 

1016 



ENERGY CONSERVATION §432 

"(C) procedures for encouraging and for carrying out energy^ 
audits with respect to buildings and indu^jrial plants within such 
State; and 

"(D) any procedures, programs, or other actions required by 
the Administrator pursuant to paragraph (2) . 
"(2) The Administrator may promulgate guidelines under this^ 
section to provide that, in order to be eligible for Federal assistance 
under this section, a supplemental State energy conservation plan 
shall include, in addition to the requirements of paragraph (1) of' 
this subsection, one or more of the following : 

"(A) the formation of, and appointment of qualified individ- 
uals to be members of, a State energy conservation advisory com- 
mittee. Such a committee shall have continuing authority ta 
advise and assist such State and its political subdivisions, with 
respect to matters relating to energy conservation in such State, 
including the carrying out of such State's energy conservation! 
plan, the development and formulation of any improvements or 
amendments to such plan, and the development and formulation 
of procedures which meet the requirements of subparagraphs ( A) , 
(B), and (C) of subsection (b)(1). The applicable guidelines 
shall be designed to assure that each such committee carefully 
considers the views of the various energy-consuming sectors 
within the State and of public and private groups concerned with 
energy conservation ; 

"(B) an adequate program within such State for the purpose 
of preventing any unfair or deceptive acts or practices affecting 
commerce which relate to the implementation of energy conserva- 
tion measures and renewable-resource energy measures ; 

"(C) procedures for the periodic verification (by use of sam- 
pling or other techniques) , at reasonable times, and under reason- 
able conditions, by qualified officials designated by such State of 
the purchase and installation and actual cost of energy conserva- 
tion measures and renewable-resource ener^ measures for which 
financial assistance was obtained under section 509 of the Housing 
and Urban Development Act of 1970, or section 451 of the Energy 
Conservation and Production Act ; and 

"(D) assistance for individuals and other persons to undertake 

cooperative action to implement energy conservation measures 

and renewable-resource energy measures. 

"(c) There are authorized to be appropriated for supplemental 

State energy conservation plans which are approved under this section 

$25,000,000 for fiscal year 1977, $40,000,000 for fiscal year 1978, and 

$40,000,000 for fiscal year 1979.". 

(b) Section 363 (b) (2) of the Energy Policy and Conservation Act 
is amended by adding at the end thereof the following : 

"No such plan shall be disapproved without notice and an opportunity 
to present views.". 

(c) Section 363(c) of the Energy Policy and Conservation Act is 
amended by (1) striking out "project or program" and "projects or 
programs" in the first sentence and inserting in lieu thereof "plan, 
program, projects, measures, or systems" in eacn case ; and (2) striking 
out "examination" in the second sentence and inserting in lieu thereof 
"examination, at reasonable times and under reasonable conditions.". 

(d) Section 365 of the Energy Policy and Conservation Act is 
amended — 

1017 



§441 ENERGY CONSERVATION 

(1) by redesignating subsection (d) as subsection (f ) ; 

(2) by adding immediately after subsection (c) the following 
two new subsections : 

"(d) The Federal Trade Commission shall (1) cooperate with and 
assist State agencies which have primary responsibilities for the pro- 
tection of consumers in activities aimed at preventing unfair and 
deceptive acts or practices affecting commerce which relate to the 
implementation of measures likely to conserve, or improve efficiency in 
the use of, energy, including energy conservation measures and renew- 
able-resource energy measures, and (2) undertake its own program, 
pursuant to the Federal Trade Commission Act, to prevent unfair or 
deceptive acts or practices affecting commerce which relate to the 
implementation of any such measures. 

"(e) Within 90 days after the date of enactment of this subsection, 
the Administrator shall — 

"(1) develop, by rule after consultation with the Secretary of 
Housing and Urban Development, and publish a list of energy 
conservation measures and renewable-resource energy measures 
which are eligible (on a national or regional basis) for financial 
assistance pursuant to section 509 of the Housing and Urban 
Development Act of 1970 or section 451 of the Energy Conserva- 
tion and Production Act ; 

"(2) designate, by rule, the types of, and requirements for, 
energy audits." ; and 

(3) in subsection (f), as redesignated by paragraph (1), by 
inserting " (other than section 367) " after "part". 

Part C — National Energy Conservation and Kenewable-Resource 
Demonstration Program for Existing Dwelling Units 



Sec. 441. Title V of the Housing and Urban Development Act of 
1970 is amended by adding the following new section at the end 
thereof : 

"energy conservation and renewable-resource demonstration 

"Sec. 509.^ (a) The Secretary shall undertake a national demonstra- 
tion program designed to test the feasibility and effectiveness of var- 
ious forms of financial assistance for encouraging the installation or 
implementation of approved energy conservation measures and 
approved renewable-resource energy measures in existing dwelling 
units. The Secretary shall carry out such demonstration program with 
a view toward recommending a national program or programs de- 
signed to reduce significantly the consumption of energy in existing 
dwelling units. 

" (b) The Secretary is authorized to make financial assistance avail- .- 
able pursuant to tliis section in the form of grants, low-interest-rate 
loans, interest subsidies, loan guarantees, and such other forms of 
assistance as the Secretary deems appropriate to carry out the pur- 



■ 1 Function transferred to the Department of Energy by section 304(b) of the Depart- 
ment of Energy Organization Act, Public Law 95-91, approved August 4, 1977. 

1018 



ENERGY CONSERVATION §509 

poses of this section. Assistance may be made available to both owners 
of dwelling units and tenants occupying such units. 

"(c) In carrying out the demonstration program required by this 
section, the Secretary shall — 

"(1) provide assistance in a wide variety of geographic areas 
to reflect differences in climate, types of dwelling units, and 
income levels of recipients in order to provide a national profile 
for use in designing a program which is to be operational and 
effective nationwide ; 

"(2) evaluate the appropriateness of various financial incen- 
tives for different income levels of owners and occupants of 
existing dwelling units ; 

"(3) take into account and evaluate any other financial assist- 
ance which may be available for the installation or implementa- 
tion of energy conservation and renewable-resource energy 
measures ; *^' 

"(4) make use of such State and local instrumentalities or 
other public or private entities as may be appropriate in carrying 
out the purposes of this section in coordination with the provisions 
of part C of title III of the Energy Policy and Conservation Act ; 
"(5) consider, with respect to various forms of assistance and 
procedures for their application, (A) the extent to which energy 
conservation measures and renewable-resource energy measures 
are encouraged which would otherwise not have been undertaken, 
(B) the minimum amount of Federal subsidy necessary to achieve 
the objectives of a national program, (C) the costs of adminis- 
tering the assistance, (D) the extent to which the assistance may 
be encumbered by delays, redtape, and uncertainty as to its 
availability with respect to any particular applicant, (E) the fac- 
tors which may prevent the assistance from being available in 
certain areas or for certain classes of persons, and (F) the extent 
to which fraudulent practices can be prevented ; and 

" (6) consult with the Administrator and the heads of such other 
Federal agencies as may be appropriate. 
"(d) (1) The amount of any grant made pursuant to this section 
shall not exceed the lesser of — 

"(A) with respect to an approved energy conservation measure, 
(i) $400, or (ii) 20 per centum of the cost of installing or other- 
wise implementing such measure ; and 

"(B) with respect to an approved renewable- resource energy 
measure, (i) $2,000, or (ii) 25 per centum of the cost of installing 
or otherwise implementing such measure. 
The Secretary may, by rule, increase such percentages and amounts 
in the case of an applicant whose annual gross family income for the 
preceding taxable year is less than the median family income for the 
housing market area in which the dwelling unit which is to be modi- 
fied by such measure is located, as determined by the Secretary. The 
Secretary may also modify the limitations specified in this paragraph 
if neceSvSary in order to achieve the purposes of this section. 

"(2) No person shall be eligible for both financial assistance under 
this section and a credit against income tax for the same energy con- 
servation measure or renewable-resource energy measure. 

"(e) The Secretary may condition the availability of financial as- 
sistance with respect to the installation and implementation of any 

1019 



§461 ENERGY CONSERVATION 

renewable-resource energy measure on such measure's meeting per- 
formance standards for reliability and efficiency and such certificaition 
procedures as the Secretary may, in consultation with the Administra- 
tor and other appropriate Federal agencies, prescribe for the purpose 
of protecting consumers. 

"(f) In carrying out the demonstration program required by this 
section, the Secretary is authorized to delegate responsibilities to, or 
to contract with, other Federal agencies or with such State or local 
instrumentalities or other public or private bodies as the Secretary 
may deem desirable. Such demonstration program shall be coordinatea 
to the extent practicable, with the State energy conservation plans as 
described in, and implemented pursuant to, part C of title III of the 
Energy Policy and Conservation Act. 

"(g) The Secretary shall submit an interim report to the Congress 
not later than 6 months after the date of enactment of this section (and 
every 6 months thereafter until the final report is made under this 
subsection) indicating the progress made in carrying out the demon- 
stration program required bj this section and shall submit a final 
report to the Congress, containing findings and legislative recommen- 
dations, not later than 2 years after the date of enactment of this sec- 
tion. As part of each report made imder this subsection, the Secretary 
shall include an evaluation, based on the criteria described in subsec- 
tion (h). of each demonstration project conducted under this section. 
"(h) Prior to undertaking any demonstration project under this 
section, the Secretary shall specify and report to the Congress the 
criteria by which the Secretary will evaluate the effectiveness of the 
proje<it and the results to be sought. 
" (i) As used in this section : 

"(1) The term * Administrator' means the Administrator of the 
Federal Energy Administration ; except that after such Adminis- 
tration ceases to exist, such term means any officer of the United 
States designated by the President for purposes of this section. 
"(2) The term ^approved', with respect to an energy conserva- 
tion measure or a renewable-resource energy measure, means any 
such measure which is included on a list of such measures which 
is published by the Administrator of the Federal Energy Ad- 
ministration pursuant to section 365(e) (1) of the Energy Policy 
and Conservation Act. The Administrator may, by rule, require 
that an energy audit be conducted as a condition of obtaining as- 
sistance under this section for a renewable-resource energy 
measure. 

"(3) The terms ^energy audit', ^energy conservation measure', 
and 'renewable-resource energy measure' have the meanings pre- 
scribed for such terms in section 366 of the Energy Policy and 
Conservation Act. 
"(j) There is authorized to be appropriated, for purposes of this 
section, not to exceed $200,000,000. Any amount appropriated pursu- -■ 
ant to this subsection shall remain available until expemded." 

Part E — ^Miscellaneous Provisions 

exchange op intormation 

Sec. 461. The Administrator shall (through conferences, publica- 
tions, and other appropriate means) encourage and facilitate the ex- 

1020 



ENERGY CONSERVATION §462 

change of information among the States with respect to energy con- 
servation and increased used of nondepletable energy sources. 

REPORT BY THE CO^VfPTROLLER GENERAL 

Sec. 462. (a) For each fiscal year ending before October 1, 1979, the 
Comptroller General shall report to the Congress on the activities of 
the Administrator and the Secretary under this title and any amend- 
ments to other statutes made by this title. The provisions of section 12 
of the Federal Energy Administration Act of 1974 (relating to access 
by the Comptroller General to books, documents, papers, statistics, 
data, records, and information in the possession of the Administrator 
or of recipients of Federal funds) shall apply to data which relate 
to such activities. 

(b) Each report submitted by the Comptroller General under sub- 
section (a) shall include — 

(1) an accounting, by State, of expenditures of Federal funds 
under each program authorized by this title or by amendments 
made by this title ; 

(2) an estimate of the energy savings which have resulted 
thereby ; 

(3) a thorough evaluation of the effectiveness of the programs 
authorized by this title or by amendments made by this title in 
achieving the energy conservation or renewable resource poten- 
tial available in the sectors and regions affected by such 
programs ; 

(4) a review of the extent and effectiveness of compliance moni- 
toring of programs established by this title or by amendments 
made by this title and any evidence as to the occurrence of fraud 
with respect to sucli programs ; and 

(5) the recommendations of the Comptroller General with 
respect to (A) improvements in the administration of programs 
authorized by this title or by amendments made by this title, and 
(B) additional legislation, if any, which is needed to achieve the 
purposes of this title. 

(c) As used in this part : 

(1) The term "Administrator" means the Administrator of the 
Federal Energy Administration ; except that after such Admin- 
istration ceases to exist, such term means any officer of the United 
States designated by the President for purposes of this part. 

(2) The term "Comptroller General" means the Comptroller 
General of the United States. 

(3) The term "Secretary" means the Secretary of Housing and 
Urban Development. 

Approved August 14, 1976. 

EXCERPTS FROM EXECUTIVE ORDER 12003 

[42 Fed. Reg. 141] 

TITLE 3— THE PRESIDENT 

RELATING TO ENERGY POLICY AND CONSERVATION 

By virtue of the authority vested in me by the Constitution and the 
statutes of the United States of America, including the Energy Policy 

1021 



§ 2 ENERGY CONSERVATION 

and Conservation Act (89 Stat. 871,42 U S.C. 6201 et ^^^O .tiie Motor 
Vehicle Information and Cost Savings Act, as amended (15 U.b.C. 
1901 et seq,), Section 205 (a) of the Federal Property and Administra- 
tive Services Act of 1949, as amended (40 U.S.C. 486 (a) ) , and Section 
301 of Title 3 of the United States Code, and as President of the 
United States of America, it is hereby ordered as follows : 



Sec. 2. Executive Order No. 11912 of April 13, 1976, is further 
amended by adding the following new Section : 

"Sec 10. (a) (1) The Administrator of the Federal Energy Admin- 
istration hereinafter referred to as the Administrator, shall develop, 
with the concurrence of the Director of the Office of Management and 
Budget, and in consultation with the Secretary of Defense, the Sec- 
retary of Housing and Urban Development, the Administrator ot Vet- 
erans' Affairs, the Administrator of the Energy Eesearch and Devel- 
opment Administration, the Administrator of General Services, and 
the heads of such other Executive agencies as he deems appropriate, 
the ten-year plan for energy conservation with respect to Government 
buildings, as provided by section 381(a) (2) of the Energy Policy and 
Conservation Act (42 U.S.C. 6361 (a) (2) ) . 

"(2) The goals established in subsection (b) shall apply to the fol- 
lowing categories of Federally-owned buildings: (i) office buildings, 
(ii) hospitals, (iii) schools, (iv) prison facilities, (v) multi-family 
dwellings, (vi) storage facilities, and (vii) such other categories of 
buildings for which the Administrator determines the establishment 
of energy-efficiency performance goals is feasible. 

"(b) The Administrator shall establish requirements and proce- 
dures, which shall be observed by each agency unless a waiver is 
granted by the Administrator, designed to ensure that each agency to 
the maximum extent practicable aims to achieve the following goals : 

" (1) For the total of all Federally-owned existing buildings the goal 
shall be a reduction of 20 percent in the average annual energy use 
per gross square foot of floor area iii 1985 from the average energy use 
per gross square foot of floor area in 1975. This goal shall apply to all 
buildings for which construction was or design specifications were 
completed prior to the date of promulgation of the guidelines pur- 
suant to subsection (d) of this Section. 

"(2) For the total of all Federally-owned new buildings the goal 
shall be a reduction of 45 percent in the average annual energy require- 
ment per gross square foot of floor area in 1985 from the average an- 
nual energy use per gross square foot of floor area in 1975. This goal 
shall apply to all new buildings for which design specifications are 
completed after the date of promulgation of the guidelines pursuant to 
subsection (d) of this Section. 

"(c) The Administrator with the concurrence of the Director of the 
Office of Management and Budget, in consultation with the heads of-:' 
the Executive agencies specified in subsection (a) and the Director 
of the National Bureau of Standards, shall establish, for purposes of 
developing the ten-year plan, a practical and effective method for 
estimating and comparing life cycle capital and operating costs for 
i^ederal buildings, including residential, commercial, and industrial 
type categories. Such method shall be consistent with the Office of 
Management and Budget Circular No. A-94, and shall be adopted and 

1022 



ENERGY CONSERVATION |2 

used by all agencies in developing their plans pursuant to subsection 
(e), annual reports pursuant to subsection (g), and budget estimates 
pursuant to subsection (h). For purposes of this paragraph, the term 
"life cycle cost" means the total costs of owning, operating, and main- 
taining a building over its economic life, including its fuel and energy 
costs, determined on the basis of a systematic evaluation and com- 
parison of alternative building systems. 

"(d) Not later than November 1, 1977, the Administrator, with the 
concurrence of the Director of the Office of Management and Budget, 
and after consultation with the Administrator of General Services 
and the heads of the Executive agencies specified in subsection (a) 
shall issue guidelines for the plans to be submitted pursuant to sub- 
section (e). 

"(e)(1) The head of each Executive agency that maintains any 
existing building or will maintain any new building shall submit no 
later than six months after the issuance of guidelines pursuant to 
subsection (d), to the Administrator a ten-year plan designed to the 
maximum extent practicable to meet the goals in subsection (b) for 
the total of existing or new Federal buildings. Such ten-year plans 
shall only consider improvements that are cost-effective consistent 
with the criteria established by the Director of the Office of Manage- 
ment and Budget (0MB Circular A-94) and the method established 
pursuant to subsection (c) of this Section. The plan submitted shall 
specify appropriate energy-saving initiatives and shall estimate the 
expected improvements by fiscal year in terms of specific accomplish- 
ments — energy savings and cost savings — together with the estimated 
costs of achieving the savings. 

"(2) The plans submitted shall, to the maximum extent practi- 
cable, include the results of preliminary energy audits of all existing 
buildings with over 30,000 gross square feet of space owned and 
maintained by Executive agencies. Further, the second annual report 
submitted under subsection (g) (2) of this Section shall, to the maxi- 
mum extent practicable, include the results of preliminary energy 
audits of all existing buildings with more than 5,000 but not more than 
30,000 gross square feet of space. The purposes of such preliminary en- 
ergy audits shall be to identify the type, size, energy use level and 
major energy using systems of existing Federal buildings. 

"(3) The Administrator shall evaluate agency plans relative to the 
guidelines established pursuant to subsection (d) for such plans and 
relative to the cost estimating method established pursuant to sub- 
section (c). Plans determined to be deficient by the Administrator 
will be returned to the submitting agency head for revision and re- 
submission within 60 days. 

"(4) The liead of any Executive agency submitting a plan, should 
he disagree with the Administrator's determination with respect to 
that plan, may appeal to the Director of the Office of Management 
and Budget for resolution of the disagreement. 

"(f) The head of each agency submitting a plan or revised plan 
determined not deficient by the Administrator or, on appeal, by the 
Director of the Office of Management and Budget, shall implement 
the plan in accord with approved budget estimates. 

"(g) (1) Each Executive agency shall submit to the Administrator 
an overall plan for conserving fuel and energy in all operations of 
the agency. This overaill plan shall be in addition to and include 

1023 



§2 ENERGY CONSERVATION 

any ten-j^ear plan for energy conservation in Government buildings 
submitted in accord with Subsection (e). 

"(2') By July 1 of each year, each Executive agency shall submit 
a report to the Administrator on progress made toward achieving 
the goals established in the overall plan required by paragraph (1) 
of this subsection. The annual report shall include quantitative meas- 
ures and accomplishment with respect to energy saving actions taken, 
the cost of these actions, the energy saved, the costs saved, and other 
benefits realized. 

"(3) The Administrator shall prepare a consolidated annual re- 
port on Federal government progress toward achieving the goals, in- 
cluding aggregate quantitative measures of accomplishment as well 
as suggested revisions to the ten-year plan, and submit the report to 
the President by August 15 of each year. 

"(h) Each agency required to submit a plan shall submit to the 
Director of the Office of Management and Budget with the agency's 
annual budget submission, and in accordance with procedures and 
requirements that the Director shall establish, estimates for imple- 
mentation of the agency's plan. The Dire<itor of the Office of Man- 
agement and Budget shall consult with the Administrator about the 
agency budget estimates. 

"(i) Each agency shall program its proposed energy conservation 
improvements of buildings so as to give the highest priority to the 
most cost-effective projects. 

"(j) No agency of the Federal government may enter into a lease 
or a commitment to lease a building the construction of which has not 
commenced by the effective date of this Order unless the building will 
likely meet or exceed the general goal set forth in subsection (b) (2). 

"(k) The provisions of this Section do not apply to housing imits 
repossessed by the Federal Government.". 

Jimmy Carter. 

The White House, July W, 1977. 



1024 



§201 

PLANNED AREAWIDE DEVELOPMENT 

EXCERPTS, DEMONSTRATION aTIES AND METROPOUTAN 
DEVELOPMENT ACT OF 1966 

[Public Law 89-754, 80 Stat. 1255, 1261; 42 U.S.C. 3331] 

TITLE II— PLANNED AEEAWIDE^ DEVELOPMENT 

FINDINGS AND DECLARATION OF PTJRPOSE 

Sec. 201.2 ^r^^ 'pj^g Congress hereby finds that the welfare of the 
"Nation and of its people is directly dependent upon the sound and 
orderly development and the effective organization and functioning of 
our State and local governments. 

It further finds that it is essential that our State and local govern- 
ments prepare, keep current, and carry out comprehensive plans and 
programs for their orderly physical development with a view to meet- 
ing efficiently all their economic and social needs. 

It further finds that our State and local governments are especially 
handicapped in this task by the complexity and scope of governmental 
services required, the multiplicity of political jurisdictions and agen- 
cies involved, and the inadequacy of the operational and administra- 
tive arrangements available for cooperation among them. 

It further finds that present requirements for areawide planning 
and programing in connection with various Federal programs have 
materially assisted in the solution of areawide problems, but that 
greater coordination of Federal programs and additional participation 
and cooperation are needed from the States and localities in perfecting 
and carrying out such efforts. 

(b) It is the purpose of this title to provide through greater coor- 
dination of Federal programs, and through supplementary grants for 
<:ertain federally assisted development projects, additional encourage- 
ment and assistance to States and localities for making comprehensive 
areawide planning and programing effective. 

COOPERATION BETWEEN FEDERAL AGENCIES 

Sec. 202. In order to insure that all Federal programs related to 
areawide development are carried out in a coordinated manner — 

(1) the Secretary is authorized to call upon other Federal 
agencies to supply such statistical data, program reports, and 
other materials as he deems necessary to discharge his responsi- 



1 Sec, 602, Honslng and Urban Development Act of 1968. Public Law 90-448, approved 
Aug. 1, 1968, 82 Stat. 476, 531, substituted "AREAWIDE" for "METROPOLITAN". 
* Sec. 602. Housing and Urban Development Act of 1968, Public Law 90-448, approved 

Aup. 1, 1968, 82 Stat. 476, 532, rewrote sec. 201 to cover planned "areawide" development 
In lieu of "metropolitan" development so as to permit supplementary Incentive grants for 
certain federally-assisted projects in all multijurisdictlonal areas instead of only in metro- 
politian areas. 



1025 



§203 PLANNED AREAWIDE DEVELOPMENT 

bilities for area wide development, and to assist the President in 
coordinating the areawide development efforts of all Federal 
agencies; and 

(2) all Federal agencies which are engaged in administering 
programs related to areawide development, or which otherwise 
perform f mictions relating thereto, shall, to the maximum extent 
practicable, consult with and seek advice from all other signifi- 
cantly affected Federal departments and agencies in an effort to 
assure fully coordinated programs. 

METROPOLITAN" EXPEDITERS 

Sec. 203. Upon the request of the duly authorized local officials of 
the central city in any metropolitan area, and after consultation with 
local governmental authorities throughout the metropolitan area with 
respect to whether or not the Secretary should make an appointment 
under this section (and with respect to the individuals who might be so 
appointed), the Secretary may appoint a metropolitan expediter ^ for 
such area whenever he finds a need for the services specified in this 
section. The metropolitan expediter shall provide information, data, 
and assistance to local authorities and private individuals and entities 
within the metropolitan area, and to all relevant Federal departments 
and agencies, with respect to all programs and activities conducted 
within such metropolitan area by the Department of Housing and 
Urban Development, and with respect to other public and private 
activities and needs within such metropolitan area which relate to the 
programs and activities of the Department. 

COORDINATION OP FEDERAL AIDS IN METROPOLITAN AREAS 

Sec. 204.2 (a) All applications made after June 30, 1967, for Fed- 
eral loans or grants to assist in carrying out open-space land projects 
or for the planning or construction of hospitals, airports, libraries, 
water supply and distribution facilities, sewerage facilities and waste 
treatment works, highways, transportation facilities, law enforcement 
facilities,^ and water development and land conservation projects 
within any metropolitan area shall be submitted for review — 

(1) to any areawide agency which is designated to perform 
metropolitan or regional planning for the area within which the 
assistance is to be used, and which is, to the greatest practicable 
extent, composed of or responsible to the elected officials of a unit 
of areawide government or of the units of general local govern- 
ment within whose jurisdiction such agency is authorized to en- 
gage in such planning, and 

«r^Ti^®r, ^ A^tP^?ol2* 2®vS1^ V^^ Department of Housing and Urban Development Appro- 
S^^KiK^f ^K*' ^^^^i ^"^"<^ Law 90-121, approved Nov. 3, 1967, 81 Stat. 341. 356. 
prohibits the use of any appropriations in that act to provide metropolitan expediters. 
«^« !i* i^l.?^??\.,9®^®^ ^5^ Department of Housing and Urban Development Approprla- 
"ame prohibmon 90-550. approved Oct. 4, 1968. 82 Stat. 937. 951. contains the 

T.HaT!)fr, ^^^«^P*??»Iq* S^lf,^^ ^^^ Department of Housing and Urban Development Appro- "m 
K?ohV»S?.fhI',il'^.^f'o^"^^^'' Law 90-121, approved Nov. 3. 1967. 81 Stat. 341, 356. 
tton of this lection appropriations in that act for the administration or implementa- 

nr^^ToH^^^^A^'V^^iLS^^^Kif^^ Department of Housing and Urban Development Ap- 
?oS?n n« fL^o^.^^^^M."^"*" ^^"^ 90-550. approved Oct. 4. 1968. 82 Stat. 937. 952. 
contains the same prohibition. • # » 

.«t?J?^- ^^^T^' ^^J?^^H?„i?^l^®„^^°*''<^^ ^^^ Safe Streets Act of 1968, Public Law 90-351. 
approved June 19, 1968. 82 Stat. 197. 208. added "law enforcement facilities". 



1026 



PLANNED AREAWIDE DEVELOPMENT §205 

(2) if made by a special purpose unit of local government, to 
the unit or units of general local government wi3i authority to 
operate in the area within which the project is to be located.^ 

(b) (1) Except as provided in paragraph (2) of this subsection, 
each application shall be accompanied (A) by the comments and rec- 
ommendations with respect to the project involved by the areawide 
agency and governing bodies of the imits of general local government 
to which the application has been submitted for review, and (B) by a 
statement by the applicant that such comments and recommendations 
have been considered prior to formal submission of the application. 
Such comments shall include information concerning the extent to 
which the project is consistent with comprehensive planning devel- 
oped or in the process of development for the metropolitan area or the 
unit of general local government, as the case may be, and the extent to 
which such project contributes to the fulfillment of such planning. The 
comments and recommendations and the statement referred to in this 
paragraph shall, except in the case referred to in paragraph (2) of 
this subsection, be reviewed by the agency of the Federal Government 

I to which such application is submitted for the sole purpose of assisting 
I it in determining whether the application is in accordance with the 
provisions of Federal law which govern the making of the loans or 
grants. 

j (2) An application for a Federal loan or grant need not be accom- 

I panied by the comments and recommendations and the statements re- 

i lerred to in paragraph (1) of this subsection, if the applicant certifies 

I that a plan or description of the project, meeting the requirements of 

such rules and regulations as may be prescribed under subsection (c), 

or such application, has lain before an appropriate areawide agency 

or instrumentality or imit of general local government for a period 

of sixty days without comments or recommendations thereon being 

made by such agency or instrumentality. 

(3) The requirements of paragraphs (1) and (2) shall also apply to 
anj amendment of the application which, in light of the purposes of 
this title, involves a major change in the project covered by the ap- 
plication prior to such amendment. 

(c) The Bureau of the Budget, or such other agency as may be des- 
ignated by the President, is hereby authorized to prescribe such rules 
and regulations as are deemed appropriate for the effective adminis- 
tration of this section. 

GRANTS ^ TO ASSIST IN PLANNED ARK A WIDE DEVELOPMENT 

Sec. 205. (a) The Secretary is authorized to make supplementary 
grants to applicant State and local public bodies and agencies carrying 
out, or assisting in carrying out, areawide development projects meet- 
ing the requirements of this section. 

(b) Grants may be made under this section only for areawide de- 
velopment projects in areas for which it has been demonstrated, to the 
satisfaction of the Secretary, that — 

* Health service systeiDB agrenclet are regalred try the National Health Planning and 
Resources Development Act of 1974, Public Law 93-641, to coordinate their activltleB with 
entitles referred to In sabparagraphs (1) and (2). 

» No appropriation has been made for grants under thli program although requested for 
fiscal years 1967. 1968. and 1969. 



1027 



§205 



PLANNED AREAWIDE DEVELOPMENT 



(1) comprehensive planning and programing provide an ade- 
quate basis for evaluating (A) the location, financing, and 
scheduling of individual public facility projects (including but 
not limited to hospitals and libraries; sewer, water, and sewage 
treatment facilities; highway, mass transit, airport, and other 
transportation facilities; and recreation and other open-space 
areas) whether or not federally assisted; and (B) other proposed 
land development or uses, which projects or uses, because of their 
size, density, type, or location, have public areawide or inter- 
jurisdictional significance; 

(2) adequate areawide institutional or other arrangements exist 
for coordinating, on the basis of such areawide comprehensive 
planning and programing, local public policies and activities 
affecting the development of the area ; and 

(3) public facility projects and other land development or uses 
which have a major impact on the development of the area are, in. 
fact, being carried out in accord with such areawide comprehensive 
planning and programing. 

(c) (1) Where the applicant for a grant under this section is a unit 
of general local government, it must demonstrate to the satisfaction 
of the Secretary that, taking into consideration the scope of its author- j 
ity and responsibilities, it is adequately assuring that public facility 1 
projects and other land development or uses of public areawide or in- 
terjurisdictional significance are being, and will be, carried out in 
accord with areawide planning and programing meeting the require- 
ments of subsection (b). In making this determination the Secretary 
shall give special consideration to whether the applicant is effectively 
assisting in, and conforming to, areawide planning and programing 
through (A) the location and scheduling of public facility projects, 
whether or not federally assisted; and (B) where appropriate, the 
establishment and consistent administration of zoning codes, subdivi- 
sion regulations, and similar land-use and density controls. 

(2) Where the applicant for a grant under this section is not a unit 
of general local government, both it and the unit of general local gov- 
ernment having jurisdiction over the location of the project must meet 
the requirements of this subsection. 

(d) In making the determinations required under this section, the 
Secretary shall obtain, and give full consideration to, the comments 
of the body or bodies (State or local) responsible for comprehensive 
planning and programing for the area. 

(e) No grant shall be made under this section with respect to an 
areawide development project for which a Federal grant has been 
made, or a contract of assistance has been entered into, under the 
legislation referred to in paragraph (2) of section 208, prior to Feb- 
ruary 21, 1966, or more than one year prior to the date on which the 
Secretary has made the determinations required under this section 
with respect to the applicant and to the area in which the project is 
located : Provided^ That in the case of a project for which a contract 
of assistance under the legislation referred to in paragraph (2) of 
section 208 has been entered into after June 30, 1967, no grant shall 
be made under this section unless an application for such grant has 
been made on or before the date of such contract. 



1028 



PLANNED ABEAWIDE DEVELOPMENT §208 

(f ) Nothing in this section shall authorize the Secretary to require 
(or condition the availability or amount of financial assistance au- 
thorized to be provided under this title upon) the adoption by any 
community of a program to achieve a racial balance or to eliminate 
racial imbalance within school districts. 

EXTENT OF GRANT 

Sec. 206. (a) A grant under section 205 shall not exceed (1) 20 
per centum of the cost of the project for which the grant is made ; nor 
(2) the Federal grant made with respect to the project under the leg- 
islation referred to in paragraph (2) of section 208. In no case shall 
the total Federal contributions to the cost of such project be more than 
80 per centum. Notwithstanding any other provision of law, includ- 
ing requirements with respect to non-Federal contributions, grants 
under section 205 shall be eligible for inclusion (directly or through 
refunds or credits) as part of the financing for such projects : Provided^ 
That projects or activities on the basis of which assistance is provided 
under section 1056(c) ^ shall not be eligible for assistance under section 
205. 

(b) There are authorized to be appropriated for grants under sec- 
tion 205 not to exceed $25,000,000 for the fiscal year ending June 30, 
1967, and not to exceed $50,000,000 for the fiscal year ending June 30, 
1968.^ Any amounts appropriated under this section shall remain 
available until expended, and any amounts authorized for any fiscal 
year under this section but not appropriated ^ may be appropriated 
for any succeeding fiscal year commencing prior to July 1, 1970. 

CONSULTATION AND CERTIFICATION 

Sec. 207. In carrying out his authority under section 205, including 
the issuance of regulations, the Secretary shall consult with the Depart- 
ment of the Interior ; the Department of Health, Education, and Wel- 
fare ; the Department of Commerce ; and the Federal A\dation Agency 
with respect to metropolitan development projects assisted by tliose 
departments and agencies ; and he shall, for the purpose of section 206, 
accept their respective cei-tifications as to the cost of those projects and 
the amount of the non-Federal contribution paid or to be paid to that 
cost. 

DEFINITIONS 

Sec. 208. As used in this title — 

(1) "Areawide development" means all projects or programs for 
the acquisition, use, and development of open-space land ; and the plan- 
ning and construction of hospitals, libraries, airports, water supply and 
distribution facilities, sewerage facilities and waste treatment works, 
transportation facilities, highways, water development and land con- 
servation, and other public works facilities. 

(2) "Area wide development project" means a project assisted or 
to be assisted under section 702 of the Housing and Urban Develop- 

1 Model cities programs. 

2 No appropriation has been made for grants under this program although requested for 
flsrnl vear 1907. 1968. and 1969. 

« Sef. 602^f). Hnnslne nnd TT-han Dpvp1opmpT>t Art of 196Q. Public Lnw 90-448. approved 
Antr. 1, 1968. 82 Stat. 476, 532, continued until July 1, 1970, the availability of unappro- 
priated authorizations. 



1029 



§208 



PLANNED AREAWIDE DEVELOPMENT 



ment Act of 1965 ; title II of the Library Services and Construction 
Act; section 606 of the Public Health Service Act; section 8 of the 
Federal Water Pollution Control Act; section 120 fa) of title 23, 
United States Code ; section 12 of the Federal Airport Act ; section 3 of 
the Urban Mass Transportation Act of 1964; title VII of the Housing 
Act of 1961 ; or section 5 (e) of the Land and Water Conservation Fund 
Act of 1965 ; or under section 101 (a) (1) of the Public Works and Eco- 
nomic Development Act of 1965 (for a project of a type which the 
Secretary determines to be eligible for assistance under any of the 
other provisions listed above) . 

(3) "State" means any State of the United States, the District of 
Columbia, the Commonwealth of Puerto Kico, any territory or posses- 
sion of the United States, or any agency or instrumentality of any of 
the foregoing. 

(4) "Metropolitan area" means a standard metropolitan statistical 
area as established by the Bureau of the Budget, subject however to 
such modifications and extensions as the Secretary may determine to be 
appropriate for the purposes of this title. 

(5) "Comprehensive planning" includes the following, to the extent 
directly related to area needs or needs of a unit of general local govern- 
ment : (A) preparation, as a guide for long-range development, of gen- 
eral physical plans with respect to the pattern and intensity of land use 
and the provision of public facilities, including transportation facili- 
ties; (B) programing of capital improvements based on a determina- 
tion of relative urgency; (C) long-range fiscal plans for implement- 
ing such plans and programs; and (D) proposed regulatory and 
administrative measures which aid in achieving coordination of all re- 
lated plans of the departments or subdivisions of the governments 
concerned and intergovernmental coordination of related planned ac- 
tivities among the State and local governmental agencies concerned. 

(6) "Hospital" means any public health center or general, tuber- 
culosis, mental, chronic disease, or other type of hospital and related 
facilities, such as laboratories, outpatient departments, nurses' home 
and training facilities, and central service facilities normally operated 
in connection with hospitals, but does not include any hospital fur- 
nishing primarily domiciliary care. 

(7) "Area wide agency" means an official State or metropolitan, 
regional, or district agency empowered under State or local laws or 
under an interstate compact or agreement to perform comprehensive 
planning in an area ; an organization of the type referred to in section 
701(g) of the Housing Act of 1954; or such other agency or instru- 
mentality as may be designated by the Governor (or, in the case of areas 
crossing State lines, any one or more of such agencies or instrumen- 
talities as may be designed by the Governor of the States involved) 
to perform such planning. 

(8) "Special purpose unit of local government" means any special 
district, public-purpose corporation, or other limited-purpose political 
subdivision of a State, but shall not include a school district. 

(9) "Unit of general local government" means any city, county, 
town, parish, village, or other general-purpose political subdivision 
of a State. 

(10) "Secretary" means the Secretary of Housing and Urban 
Development. 



1030 



PLANNED AREAWIDE DEVELOPMENT §209 

STATE LIMIT 

Sec. 209. Grants made under section 205 for projects in any one 
5tate shall not exceed in the aggregate 15 per centum of the aggregate 
imount of funds authorized to be appropriated pursuant to section 
i06(b). 

« • • • ♦ * • 

Approved November 3, 1966. 



1031 



§ 4 and § 134 



URBAN TRANSPORTATION 

COOPERATION AND STUDIES WITH DEPARTMENT 
OF TRANSPORTATION 

EXCERPTS FROM DEPARTMENT OF TRANSPORTATION ACT 

[Public Law 89-670, 80 Stat. 931, 934; 49 U.S.C. 1653] 

GENERAL PROVISIONS 



Sec. 4. 



* * * 



(f ) The Secretary shall cooperate and consult with the Secretaries 
of the Interior, Housing and Urban Development, and Agriculture, 
and with the States in developing transportation plans and programs 
that include measures to maintain or enhance the natural beauty of the 
lands traversed. After the effective date of this Act, the Secretary 
shall not approve any program or project which requires the use of 
any land from a public park, recreation area, wildlife and waterfowl 
refuge, or historic site unless (1) there is no feasible and prudent alter- 
native to the use of such land, and (2) such progi-am includes all pos- 
sible planning to minimize harm to such park, recreational area, wild- 
life and waterfowl refuge, or historic site resulting from such use. 

(g) The Secretary and the Secretary of Housing and Urban Devel- 
opment shall consult and exchange information regarding their re- 
spective transportation policies and activities; carry on joint planning, 
research and other activities ; and coordinate assistance for local trans- 
portation projects. They shall jointly study how Federal policies and 
programs can assure that urban transportation systems most effectively 
serve both national transportation needs and the comprehensively 
plamied development of urban areas. They shall, within 1 year after 
the effective date of this Act, and annually thereafter, report to the 
President, for submission to the Congress, on their studies and other 
activities under this subsection, including any legislative recommenda- 
tions which they determine to be desirable. The Secretary and the 
Secretary of Housing and Urban Development shall study and report 
within 1 year after the effective date of this Act to the President and 
the Congress on the logical and efficient organization and location of 
urban mass transportation functions in the executive branch. 

♦ ***♦*♦ 

Approved October 15, 1966. 

FEDERAL-AID HIGHWAYS 

EXCERPTS FROM TITLE 23, UNITED STATES CODE 

§ 134, Transportation planning in certain urban areas 

(a) It is declared to be in the national interest to encourage and pro- 
mote the development of- transportation systems, embracing various 

1033 



§138 URBAN TRANSPORTATION 

modes of transport in a manner that will serve the States and loca! 
communities efficiently and effectively. To accomplish this objectivr 
the Secretary shall cooperate with the States, as authorized in this title 
in the development of long-range highway plans and programs whicl 
are properly coordinated with plans for improvements m other affectec; 
forms of transportation and which are formulated with due considera- 
tion to their probable effect on the future development of urban areas; 
of more than fifty thousand population. After July 1, 1965, the Secre-, 
tary shall not approve under section 105 of this title any program f oi 
projects in any urban area of more than fifty thousand population 
unless he finds that such projects are based on a continuing compre- 
hensive transportation i)lanning process carried on cooperatively by 
States and local communities in conformance with the objectives stated 
in this section. No highway project may be constinicted in any urban 
area of fifty thousand population or more unless the responsible public 
officials of such urban area in which the project is located have been 
consulted and their views considered with respect to the corridor, thej 
location and the design of the project. 

(b) The Secretary may define those contiguous interstate areas oi 
the Nation in which the movement of persons and goods betweenl" 
principal metropolitan areas, cities, and industrial centers has reached, 
or is expected to reach, a critical volume in relation to the capacity of 
existing and planned transportation systems to efficiently accommo- 
date present transportation demands and future growth. After con- 
sultation with the Governors and responsible local officials of affected 
States, the Secretary may by regulation designate, for administrative 
and planning purposes, as a critical transportation region or a critical 
transportation corridor each of those areas which he determines most ' 
urgently require the accelerated development of transportation systems 
embracing various modes of transport, in accordance with purposes of 
this section. The Secretary shall immediately notify such Governors 
and local officials of such designation. The Secretary may, after con- 
sultation with the Governors and responsible local officials of the af- 
fected States, provide by regulation for the establishment of planning 
bodies to assist in the development of coordinated transportation 
planning, including highway planning, to meet the needs of such 
regions or corridors, composed of representatives of the affected States 
and metropolitan areas, and may provide assistance including financial 
assistance to such bodies. There is authorized to be appropriated, out 
of any money in the Treasury not otherwise appropriated, not to ex- 
ceed $500,000 to carry out this subsection. 

§ 138. Preservation of parklands 

^It is hereby declared to be the national policy that special effort 
should be made to preserve the natural beauty of the countryside and 
public park and recreation lands, wildlife and waterfowl refuges, and 
historic sites. The Secretary of Transportation shall cooperate and 
consult with the Secretaries of the Interior, Housing and Urban De- 
velopment, and Agriculture, and with the States in developing trans- 
portation plans and programs that include measures to maintain or 
enhance the natural beauty of the lands traversed. After the effective 
date of the Federal-Aid Highway Act of 1968, the Secretary shall not 
approve any program or project which requires the use of any pub- 



1034 



URBAN TRANSPORTATION §307 

\cly owned land from a public park, recreation area, or wildlife and 

1 Vater fowl refuge of national, State, or local significance as determined 

vby the Federal, State, or local officials having jurisdiction thereof, or 

^xiij land from an historic site of national. State, or local significance 

as so determined by such officials unless (1) there is no feasible and 

:; prudent alternative to the use of such land, and (2) such program 

^includes all possible planning to minimize harm to such park, recrea- 

^:ional area, wildlife and waterfowl refuge, or historic site resulting 

^^from such use. 

jn 

c. } 307. Research and planning 

jv (a) The Secretary is authorized in his discretion to engage in re- 
id search on all phases of highway construction, modernization, develop- 
ij nent, design, maintenance, safety, financing, and traffic conditions, in- 
c eluding the efi'ect thereon of State laws and is authorized to test, de- 
n relop, or assist in the testing and developing of any material, invention, 
,e patented article, or process. The Secretary may publish the results of 
such research. The Secretary may carry out the authority granted 
}f lereby, either independently, or in cooperation with any other oranch 
pf the Government, State agency, autnority, association, institution, 
i corporation (profit or nonprofit) , or any other organization, or person. 
f The Secretary is also authorized, acting independently or in co- 
> )peration with other Federal departments, agencies, or instrumentali- 
1. des, to make grants for research fellowships for any purpose for which 
\ 'esearch is otherwise authorized by this section. The funds required 
g o carry out the provisions of this subsection shall be taken out of 
.phe administrative and research funds authorized by section 104 of 
;. his title, funds authorized to carry out section 403 of this title, and 
; 5uch funds as may be deposited in a special account with the Secretary 
f )f the Treasury for such purposes by any cooperating organization or 
^ Derson. The provisions of section 3709 of the Revised Statutes, as 
. imended (41 U.S.C. 5), shall not be applicable to contracts or agree- 
: nents made under the authority of this subsection. 
, (b) The Secretary shall include in the highway research program 
^ lerein authorized studies of economic highway geometries, structures, 
■^ ind desirable weight and size standards for vehicles using the public 
, lighways and of the feasibility of uniformity in State regulations 
1 with respect to such standards and he shall report from time to time 
; o the Committees on Public Works of the Senate and of the House 
)f Representatives on the progress and findings with respect to such 
;tudies. The highway research program herein authorized shall also 
nclude studies to identify and measure, quantitatively and qualita- 
ively, those factors which relate to economic, social, environmental, 
t md other impacts of highway projects. 

i (c) (1) Not to exceed li^ per centum of the sums apportioned for 
i ach fiscal year beginning with fiscal year 1974 to any State under sec- 
1 ion 104 of this title shall be available for expenditure upon request of 
. he State highway department, with the approval of the Secretary, 
, vith or without State funds, for engineering and economic surveys and 
. nvestigations ; for the planning of future highway programs and local 
, )ublic transportation systems and for planning for the financing 
; I hereof ; for studies of the economy, safety, and convenience of high- 
way usage and the desirable regulation and equitable taxation thereof; 
nd for research and development, necessary in connection with the 



1035 



11601 URBAN TRANSPORTATION 

Elanning, design, construction, and maintenance of highways and 
ighway systems, and the regulation and taxation of their use. 

(2) One and one-half per centum of the sums apportioned for each 
fiscal year beginning with the fiscal year 1964 to any State under sec- 
tion 104 of this title shall be available for expenditure by the State 
highway department only for the purposes enumerated in paragraph 
( 1 ) of this subsection. 

(3) In addition to the percentage provided in paragraph (2) of this 
subsection, not to exceed one-half of one per centum of sums appor- 
tioned for each fiscal year beginning with the fiscal year 1964 under 
paragraphs (1), (2), and (3) of section 104(b) of this title shall be 
available for expenditure upon request of the State highway depart- 
ment for the purposes enumerated in paragraph (1) of this subsection, 
including demonstration projects in connection with such purposes. 

(4) Sums made available under paragraphs (2) and (3) of this sub- 
section shall be matched by the State in accordance with section 120 of 
this title unless the Secretary determines that the interests of the Fed- 
eral-aid highway program would be best served without such matching. 

(d) As used in this section the term "safety" includes, but is not lim- 
ited to, highway safety systems, research, and development relating to 
vehicle, highway, and driver characteristics, accident investigations, 
commimications, emergency medical care, and transportation of the 
injured. 

§1601. Declaration of findings and purposes 

(a) The Congress finds — 

(1) that the predominant part of the Nation's population is lo- 
cated in its rapidly expanding metropolitan and other urban areas, 
which generally cross the boimdary lines of local jurisdictions and 
often extend into two or more States; 

(2) that the welfare and vitality of urban areas, the satis- 
factory movement of people and goods within such areas, and the 
effectiveness of housing, urban renewal, highway, and other fed- 
erally aided programs are being jeopardized by the deterioration 
or inadequate provision of urban transportation facilities and 
services, the intensification of traffic congestion, and the lack of 
coordinated transportation and other development planning on a 
comprehensive and continuing basis; and 

(3) that Federal financial assistance for the development of 
efficient and coordinated mass transportation systems is essen- 
tial to the solution of these urban problems. 

(b) The purposes of this chapter are — 

(1) to assist in the development of improved mass transporta- 
tion facilities, equipment, techniques, and methods, with the co- 
operation of mass transportation companies both public and 
private ; 

(2) to encourage the planning and establishment of areawide 
urban mass transportation systems needed for economical and 
desirable urban development, with the cooperation of mass trans-, 
portation companies both public and private; and 

(3) to provide assistance to State and local governments and 
their instrumentalities in financing such systems, to be operated by 



1036 



URBAN TRANSPORTATION §1610 

i public or private mass transportation companies as determined by 
local needs. 

^ 5 1601a. Same ; additional findings 

^^ ' The Congress finds that the rapid urbanization and the continued 
^ dispersal of population and activities within urban areas has made the 
ability of all citizens to move quickly and at a reasonable cost an 
, urgent national problem; that it is imperative, if efficient, safe, and 
r convenient transportation compatible with soundly planned urban 
. areas is to be achieved, to continue and expand this chapter ; and that 
, success will require a Federal commitment for the expenditure of at 
[ least $10,000,000,000 over a twelve-year period to permit confident and 
continuing local planning, and greater flexibility in program adminis- 
tration. It is the purpose of this Act to create a partnership which per- 
mits the local community, through Federal financial assistance, to ex- 
ercise the initiative necessary to satisfy its urban mass transportation 
requirements. 

3 1606. Relocation program 

I (a) No financial assistance shall be extended to any project under 
section 1602 of this title unless the Secretary determines that an 
adequate relocation program is being carried on for families displaced 
by the project and that there are being or will be provided (in the same 
irea or in other areas generally not less desirable in regard to public 
jtilities and public and commercial facilities and at rents or prices 
p^ithin the financial means of the displaced families) an equal num- 
ber of decent, safe, and sanitary dwellings available to those displaced 
families and reasonably accessible to their places of employment, 
(b) Kepealed. 

5 1607. Coordination of Federal assistance for highways and for 
mass transportation facilities 

In order to assure coordination of highway and railway and other 
iaaass transportation planning and development programs in urban 
areas, particularly with respect to the provision of mass transportation 
facilities in connection with federally assisted highways, the Secre- 
:ary and the Secretary of Commerce shall consult on general urban 
:ransportation policies and programs and shall exchange information 
Dn proposed projects in urban areas. 

J 1610. Environmental protection 

(a) It is hereby declared to be the national policy that special effort 
jhall be made to preserve the natural beauty of the countryside, public 
mrk and recreation lands, wildlife and waterfowl refuges, and impor- 
;ant historical and cultural assets, in the planning, designing, and con- 
{truction of urban mass transportation projects for which Federal 
issistance is provided pursuant to section 1602 of this title. In imple- 
nenting this policy the Secretary shall cooperate and consult with the 
Secretaries of Agriculture, Health, Education, and Welfare, Housing 
md Urban Development, and Interior, and with the Council on Envi- 
ronmental Quality with regard to each project that may have a sub- 
jtanial impact on the environment. 

(b) The Secretary shall review each transcript of hearing sub- 
nitted pursuant to section 1602(d) of this title to assure that an ade- 



1037 



11612 URBAN TRANSPORTATION 

quate opportunity was afforded for the presentation of views by a 
parties with a significant economic, social, or environmental interes: 
and that the project application includes a detailed statement on — | 

(1) the environmental impact of the proposed project, 

(2) any adverse environmental effects which cannot be avoide- 
should the proposal be implemented, 

^3) alternatives to the proposed project, and ^ 1 

(4) any irreversible and irretrievable impact on the envirorj 
ment which may be involved in the proposed project should it b 
implemented. ^ ^ j 

(c) The Secretary shall not approve any application for assistancij 
under section 1602 of this title unless he mids in writing, after a ful 
and complete review of the application and of any hearings held bef or* 
the State or local public agency pursuant to section 1602(d) of thi 
title, that (1) adequate opportimity was afforded for the presentatioi I 
of views by all parties with a significant economic, social, or environ 
mental interest, and fair consideration has been given to the preserva 
tion and enhancement of the environment and to the interest of thi 
community in which the project is located, and (2) either no adverse, 
environmental effect is likely to result from such project, or there exists 
no feasible and prudent alternative to such effect and all reasonabh 
steps have been taken to minimize such effect. In any case in which a 
hearing has not been held before the State or local agency pursuant tc 
section 1602(d) of this title, or in which the Secretary determines that 
the record of hearings before the State or local public agency is inade- 
quate to permit him to make the findings reqiiired under the preceding 
sentence, he shall conduct hearings, after giving adequate notice to 
interested persons, on any environmental issues raised by such appli-i 
cation. Findings of the Secretary under this subsection shall be made 
a matter of public record. 

§ 1612. Planning and design of mass transportation facilities to 
meet special needs of the elderly and the handicapped — 
Congressional declaration of policy 

(a) It is hereby declared to be the national policy that elderly and 
handicapped persons have the same right as other persons to utilize 
mass transportation facilities and services ; that special efforts shall be 
made in the planning and design of mass transportation facilities and 
services so that the availability to elderly and handicapped persons of 
mass transportation which they can effectively utilize will be assured ; 
and that all Federal programs offering assistance in the field of mass 
transportation (including the programs under this chapter) should 
contain provisions implementing this policy. 

GRANTS AND LOANS FOR SPECIAL PROJECTS TO MEET THE NEEDS OF ELDERLY 
AND HANDICAPPED PERSONS 

(b) In addition to the grants and loans otherwise provided for under 
this chapter, the Secretary is authorized to make grants and loans — 

(1) to States and local public bodies and agencies thereof for 
the specific purpose of assisting them in providing mass trans- 
portation services which are planned, designed, and carried out 
so as to meet the special needs of elderly and handicapped persons, 



1038 



URBAN TRANSPORTATION §11 

di with such grants and loans being subject to all of the terms, condi- 
•^ tions, requirements, and provisions applicable to grants and loans 

made under section 1602(a) of this title and being considered for 

the purposes of all other laws to have been made imder such 
leg section ; and 

(2) to private nonprofit corporations and associations for the 

specific purpose of assisting them in providing transportation 
u* services meeting the special needs of elderly and handicapped 
\a persons for whom mass transportation services planned, designed, 

and carried out under paragraph (1) are unavailable, insufficient, 
!I8 or inappropriate, with such grants and loans being subject to such 
dl terms, conditions, requirements, and provisions (similar insofar 
ire as may be appropriate to those applicable to grants and loans 
lis under paragraph (1)) as the Secretary may determine to be 
■ji necessary or appropriate for purposes of this paragraph. 
:-0f the total amount of the obligations which the Secretary is au- 
> thorized to incur on behalf of the United States under the first sentence 
:ef0f section 1603(c) of this title, 2 per centum ma]^ be set aside and used 
'^ef exclusively to finance the programs and activities authorized by this 
:tsf subsection (including administrative costs). 
iei 

1,FINANCING OF KESEARCH, DEVELOPMENT AND DEMONSTRATION PROJECTS 

jj (c) Of any amounts made available to finance research, develop- 
^ ment, and demonstration projects under section 1605 of this title after 
, October 15, 1970, li/o per centum may be set aside and used exclusively 
:^ to increase the information and technology which is available to pro- 
; vide improved transportation facilities and services planned and 
' designed to meet the special needs of elderly and handicapped persons. 

DEFINITION 

(d) For purposes of this chapter, the term "handicapped person" 
i means any individual who, by reason of illness, injury, age, congenital 
] malfunction, or other permanent or temporary incapacity or disability, 
,( is unable without special facilities or special planning or design to 
^, utilize mass transportation facilities and services as effectively as 
d persons who are not so affected. 



EXCERPTS FROM URBAN MASS TRANSPORTATION ASSISTANCE 

ACT OF 1970 

[Public Law 91-453, 84 Stat. 968; 49 U.S.C. 1605 note] 



Sec. 11. Nothing in this Act shall affect the authority of the Secre- 
tary of Housing and Urban Development to make grants, under the 
authority of sections 6 (a) , 9, and 11 of the Urban Mass Transportation 
.Act of 1964 as amended (49 U.S.C. 1605a, 1607a, and 1607c), and 
•Reorganization Plan Numbered 2 of 1968 for projects or activities 
] primarily concerned with the relationship of urban transportation 
systems to the comprehensively planned development of urban areas, 
],ov the role of transportation planning in overall urban planning, out 
of funds appropriated to him for that purpose. 
Approved October 15, 1970. 



1039 



§1 URBAN TRANSPORTATION 

REORGANIZATION PLAN NO. 2 OF 1968^ 
[33 Fed. Reg. 6965] 

URBAN MASS TRANSPORTATION 

SiiCTiON 1. Transfer of functions, (a) There are hereby transferred 
to the Secretary of Transportation : 

(1) The functions of the Secretary of Housing and Urban Develop- 
ment and the Department of Housing and Urban Development under 
the Urban Mass Transportation Act of 1964 (78 Stat. 302; 49 U.S.C. 
1601-1611), except that there is reserved to the Secretary of Housing 
and Urban Development (i) the authority to make grants ^ for or un 
dertake such projects or activities under section 6(a), 9, and 11 of 
that Act (49 U.S.C. 1605(a); 1607a j 1607c) as primarily concern 
the relationship of urban transportation systems to the comprehen-l 
sively planned development of urban areas, or the role of transpor-j 
tation planning in overall urban planning, and (ii) so much of the! 
functions under sections 3, 4, and 5 of the Act (49 U.S.C. 1602-^ 
1604) as will enable the Secretary of Housing and Urban Develop- 
ment (A) to advise and assist the Secretary of Transportation m 
making fiiidings and determinations under clause (1) of section 3(c), ^ 
the first sentence of section 4(a), and clause (1) of section 5 of the Act, 
and (B) to establish jointly with the Secretary of Transportation the ■ 
criteria referred to in the first sentence of section 4(a) of the Act. ' 

(2) Other functions of the Secretary of Housing and Urban De- j 
velopment, and functions of the Department of Housing and Urban ■ 
Development or of any agency or officer thereof, all to the extent 
that they are incidental to or necessary for the performance of the ' 
functions transferred by section 1(a) (1) of this reorganization plan, 
including, to such extent, the functions of the Secretary of Housing 
and Urban Development and the Department of Housing and Urban ' 
Development under (i) title II of the Housing Amendments of 1955 | 
(69 Stat. 642; 42 U.S.C. 1491-1497), insofar as functions thereunder' 
involve assistance specifically authorized for mass transportation fa- 
cilities or equipment, and (ii) title IV of the Housing and Urban 
Development Act of 1965 (79 Stat. 485 ; 42 U.S.C. 3071-3074) . j 

(3) The functions of the Department of Housing and Urban De- \ 
velopment under section 3(b) of the Act of November 6, 1966 (P.L. ' 
89-774 ; 80 Stat. 1352 ; 40 U.S.C. 672 (b) ) . 

(b) Any reference in this reorganization plan to any provision of 
law shall be deemed to include, as may be appropriate, reference there- 
to as amended. 

Sec. 2. Delegation, The Secretary of Transportation may delegate 
any of the functions transferred to him by this reorganization plan 
to such officers and employees of the Department of Transportation 

1 EflPective June 30, 1968. 

a Sec. 11, Urban Mass Transportation Assistance Act of 1970, Public Law 91-453 
approved October 15, 1970, 84 Stat. 962, 968, provides that nothing In that Act 
"shall affect the authority of the Secretary of Housing and Urban Development to make 
grants under the authority of * • ♦ Reorganization Plan No. 2 of 1968 for projects or 
activities primarily concerned with the relationship of urban transportation systems to the 
comprehensively planned development of urban areas, or the role of transportation planning 
In overall urban planning, out of funds appropriated to him for that purpose." 



1040 



URBAN TRANSPORTATION § 3 and § 1631 

as he designates, and may authorize successive redelegations of such 

functions. 
Sec. 3. Urban Mass Transportation Administration, (a) There is 

hereby established within the Department of Transportation an 

Urban Mass Transportation Administration. 
^ (b) The Urban Mass Transportation Administration shall be 

headed by an Urban Mass Transportation Administrator, who shall 
. be appointed by the President, by and with the advice and consent of 
. the Senate, and shall be compensated^ at the rate now or hereafter 

provided for Level III of the Executive Schedule Pay Rates (5 U.S.C. 
7 5314). The Administrator shall perform such duties as the Secretary 
I of Transportation shall prescribe and shall report directly to the 
; Secretary. 

.^ Sec. 4. Interim Administrator. The President may authorize any 
" person who immediately prior to the effective date of this reorganiza- 
•. tion plan holds a position in the executive branch of the government 
J to act as Urban Mass Transportation Administrator until the office 
'. of Administrator is for the first time filled pursuant to the provisions 
. of section 3(b) of this reorganization plan or by recess appointment, 
3 as the case may be. The person so designated shall be entitled to the 
I compensation attached to the position he regularly holds. 
t,, Sec. 5. Incidental transfers, (a) So much of the personnel, prop- 
e srty, records, and unexpended balances of appropriations, allocations, 

and other funds employed, use, held, available, or to be made avail- 
:. able in connection with the functions transferred to the Secretary of 
' Transportation by this reorganization plan as the Director of the 
; Bureau of the Budget shall determine shall be transferred from the 
J Department of Housing and Urban Development to the Department 
^ of Transportation at such time or times as the Director shall direct. 
7 (b) Such further measures and dispositions as the Director of the 
\ Bureau of the Budget shall deem to be necessary in order to effec- 
: tuate the transfers provided for in subsection (a) of this section shall 
J be carried out in such manner as he shall direct and by such agencies 
,. as he shall designate. 
!j Sec. 6. Effective date."^ The provisions of tliis reorganization plan 

shall take effect at the close of Jime 30, 1968, or at the time determined 
, ander the provisions of section 906(a) of title 5 of the United States 

Code, whichever is later. 



HIGH-SPEED GROUND TRANSPORTATION 
EXCERPTS FROM TITLE 23, UNITED STATES CODE 



n \ 1631. Research and development 

1 Consistent with the objective of promoting a safe, adequate, eco- 
nomical, and efficient national transportation system, the Secretary 
. of Transportation (hereafter in this chapter referred to as the "Sec- 
1 retary") is authorized to undertake research and development in 

:i 1 Sec. 7(d), Public Law 90-623. approved Oct. 22, 1968, 82 Stat. 1312. 1316, provides that 
I ±Is part of this sentence which relates to the compensation of the Urban Mass Transporta- 

[tlon Administrator has no further effect 

' 2 The Plan was effective June 30, 1968. 



1041 



1 1632 and § 1713 URBAN TRANSPORTATION 

high-speed ground transportation and door-to-door ground transpo m 
tation, including, but not limited to, components such as materialj^f! 
aerodynamics, vehicle propulsion, vehicle control, communication 
and guideways. 
§ 1632. Demonstrations 

The Secretary is authorized to contract for demonstrations to dete j f 
mine the contributions that high-speed ground transportation an P 
door-to-door ground transportation could make to more efficient, saf 
and economical intercity transportation systems. Such demonstratior 
shall be designed to measure and evaluate such factors as the publi 
response to new equipment, higher speeds, variations in fares, in 
proved comfort and convenience, and more frequent service. In cor 
nection with contracts for demonstrations under this section, the Sec 
retary shall provide for financial participation by private industr 
to the maximum extent practicable. 

§ 1639. Consultation and cooperation with other departments ancj 
agencies, institutions and private industry j 

In exercising the authority granted under this chapter, the Secretar ; 
shall consult and cooperate, as he deems appropriate, with the Sec, 
retary of Housing and Urban Development and other department 
and agencies, Federal, State, and local. The Secretary shall f urthe 
consult and cooperate, as he deems appropriate, with institutions anc 
private industry. 



AVIATION FACILITIES EXPANSION AND IMPROVEMENl 

EXCERPTS FROM TITLE 23, UNITED STATES CODE 

§ 1713. Planning grants — Authorization to make grants 

(a) In order to promote the effective location and development o: 
airports and the development of an adequate national airport system 
plan, the Secretary may make grants of funds to planning agencies 
for airport system planning, and to public agencies tor airport master 

planning. 

AMOUNT AND APPORTIONMENT OF GRANTS 

(b) The award of grants under subsection (a) of this section is sub- 
ject to the following limitations: 

(1) The total funds obligated for grants under this section may 
not exceed $75,000,000 and the amount obligated in any one fiscal yearii 
may not exceed $15,000,000. | 

(2) No grant under this section may exceed two-thirds of the costi, 
incurred in the accomplishment of the project. j 

(3) No more than 7.5 per centum of the funds made available underi 
this section in any fiscal year may be allocated for projects within ai 
single State, the Commonwealth of Puerto Kico, the Virgin Islands,, 
American Samoa, the Trust Territory of the Pacific Islands, or Guam., 
Grants for projects encompassing an area located in two or more States' 
shall be charged to each State m the proportion which the number- 



1042 



URBAN TRANSPORTATION §1713 

%i square miles the project encompasses in each State bears to the 
Square miles encompassed by the entire project- 

*^ regulations; coordination with secretary of housing 
and urban development 
(c) The Secretary may prescribe such regulations as he deems nec- 
erssary governing the award and administration of grants authorized 
!H)y this section. The Secretary and the Secretary of Housing and Urban 
fe)evelopment shall develop jointly procedures designed to preclude 
in^luplication of their respective planning assistance activities and to 
ii,nsure that such activities are effectively coordinated. 
mi 



1043 



urban and community impact analyses 

Executive Order 12074 
[43 Fed. Keg. 36875] 

By the authority vested in me as President by the Constitution Oj 
the' United States of America, and in order to establish an interna^ 
management procedure for identifying aspects of proposed Federa, 
policies that may adversely impact cities, counties, and other com 
munities, it is hereby ordered as follows : 

1-1. Urbcm and Community Impact Analyses, 

1-101. The Director of the Office of Management and Budget shall 
(a) develop criteria for identifying major policy proposals to b 
analyzed; (b) formulate standards regarding the consent and forma 
of impact analyses; and (c) establish procedures for the submissioi 
and reviev7 of such analyses. 

1-102. The Director of the Office of Management and Budget anc 
the Assistant to the President for Domestic Affairs and Policy shal 
review the analyses. 

1-2. Agency Responsibilities. 

1-201. Executive agencies shall prepare urban and community im 
pact analyses for major policy initiatives identified by the Office o: 
Management and Budget, the Assistant to the President for Domestic 
Affairs and Policy, or the agencies themselves. 

1-202. Each Executive agency shall, to the extent permitted by law 
cooperate with the Director of the Office of Management and Budget 
and the Assistant to the President for Domestic Affairs and Policy ir 
the performance of their functions under this Order, furnish then: 
with the information they request, and comply with the procedures 
prescribed pursuant to this Order. 

Jimmy Carter 

The White House, August 16, 1978, 



1044 



interagency coordinating council 

Executive Order 12075 
[43 Fed. Keg. 36877] 

By the authority vested in me as President by the Constitution of the 
J'Jnited States of America, and in order to provide for interagency co- 
" rdination of the implementation of Federal urban and regional pol- 
cy, it is hereby ordered as follows : 

iL.l. Establishment of the Cov/ncil. 

I 1-101. There is established the Interagency Coordinating Council. 
,, ' 1-102. The Council shall be composed of the heads of the following 
?^gencies, or a designated representative, and such others as the Pres- 
ident may designate : 
^f (a) Department of the Treasury 
'^ (b) Department of Justice 

(c) Department of the Interior 

(d) Department of Agriculture 

(e) Department of Commerce 

(f) Department of Labor 

(g) Department of Health, Education, and Welfare 
(h) Department of Housing and Urban Development 

)J (i) Department of Transportation 
ij ( j ) Department of Energy 
I (k) Environmental Protection Agency 
A (1) Community Services Administration 
I (m) General Services Adminstration 
4 (n) Small Business Administration 

(o) ACTION 

1-103. The President shall designate the Chairperson of the Council. 

-2. Functions of the Council. 

1-201. The Council shall work with Executive agencies to involve 
ill sectors of the Nation, including State, county and local govern- 
nents, regional bodies, the private sector, neighborhood groups, and 
'^olunteer and civic associations, in a partnership to conserve and 
i.trengthen America's communities. 

' 1-202. The Council shall facilitate cooperation and coordination of 
irban and regional policy implementation among and between Execu- 
live agencies. 

I 1-203. The Council shall assist Executive agencies in coordinating 
imely responses to State, county and local government and community 
levelopment strategies. 

I 1-204. The Council shall identify and seek to solve interagency and 
ntergovernmental problems which impede the effective functioning 
►f the Federal system. 

1-205. The functions of the Council shall neither substitute for nor 
replace Executive Office of the President clearance, review and deci- 
lionmaking procedures. 

-3. Administrative Provisions. 

[ 1-301. Executive agencies shall cooperate with and assist the Coun- 
il in performing its functions. 

1-302. The Chairperson shall be responsible for providing the Coun- 
•il with such administrative services or support as may be necessary 
»r appropriate. 



1045 



INTERAGENCY COORDINATING COUNCIL 

1-303. The Chairperson may establish working groups or subcoml 
mittees of the Council. The Chairman may invite representatives oil 
nonmember agencies to participate from time to time in the function^ 
of the Council. 

1-304. The Chairperson shall report to the President on the per^ 
f ormance of the Council's functions. ^ 



The White House, August 16^ 1978, 



Jimmy Carter. 



1046 



101 



COMMUNITY DEVELOPMENT ASSISTANCE 

XCERPT FROM HOUSING AND COMMUNITY DEVELOPMENT ACT 

OF 1977 

[Public Law 95-128, 91 Stat. 1111, 42 U.S.C. 5301] 
******* 

TITLE I— COMIMTJNITY DEVELOPMENT 

* ****** 

EFTECTIVE DATE 

Sec. 114. The amendments made by this title shall become effective 

ctober 1, 1977. 

******* 

Approved October 12, 1977. 



:XCERPTS FROM HOUSING AND COMMUNITY DEVELOPMENT ACT 

OF 1974 

[Public Law 93-383, 88 Stat. 633] 

*^ ACT To establish a program of community development block grants, to 
amend and extend laws relating to housing and urban development, and for 
other purposes. 

Be it enacted hy the Senate and H(mse of Representatives of the 
nited States of America in Congress assembled^ That this Act may 
J cited as the "Housing and Community Development Act of 1974". 

TITLE I— COMMUNITY DEVELOPMENT 

FINDINGS AND PURPOSE 

Sec. 101. (a) The Congress finds and declares that the Nation's 
ties, towns, and smaller urban communities face critical social, eco- 
)mic, and environmental problems arising in significant measure 
om — 

(1) the growth of population in metropolitan and other urban 
areas, and the concentration of persons of lower income in central 
cities ; and 

(2) inadequate public and private investment and reinvestment 
in housing and other physical facilities, and related public and 
social services, resulting m the growth and persistence of urban 
slums and blight and the marked deterioration of the quality of 
the urban environment. 

(b) The Congress further finds and declares that the future welfare 
the Nation and the well-being of its citizens depend on the establish- 
ent and maintenance of viable urban communities as social, economic, 
d political entities, and require — 

1047 

-705 0-79-13 



§101 COMMUNITY DEVELOPMENT BLOCK GRANTS 

(1) systematic and sustained action by Federal, State, and local 
governments to eliminate blight, to conserve and renew older 
urban areas, to improve the living environment of low- and mod- 
erate-income families, and to develop new centers of population 
growth and economic activity; 
' (2) substantial expansion of and greater continuity in the 
scope and level of Federal assistance, together with increased 
private investment in support of community development activ- 
ities; and 

(3) continuing effort at all levels of government to streamline 
programs and improve the functioning of agencies responsible 
for planning, implementing, and evaluating community develop- 
ment efforts, 
(c) The primary objective of this title is the development of viable 
urban communities, by providing decent housing and a suitable living 
environment and expanding economic opportunities, principally for 
persons of low and moderate income. Consistent with this primary 
objective, the Federal assistance provided in this title is for the support 
of community development activities which are directed toward the 
following specific objectives — 

(1) the elimination of slums and blight and the prevention of 
blighting influences and the deterioration of property and neigh- 
borhood and community facilities of importance to the welfare of 
the community, principally persons of low and moderate income ; 

(2) the elimination of conditions which are detrimental to 
health, safetj^, and public welfare, through code enforcement, 
demolition, interim rehabilitation assistance, and related 
activities; 

(3) the conservation and expansion of the Nation's housing 
stock in order to provide a decent home and a suitable living 
environment for all persons, but principally those of low and 
moderate income; 

(4) the expansion and improvement of the quantity and quality 
of community services, principally for persons of low and moder- 
ate income, which are essential for sound community development 
and for the development of viable urban communities ; 

(5) a more rational utilization of land and other natural 
resources and the better arrangement of residential, commercial, 
industrial, recreational, and other needed activity centers; 

(6) the reduction of the isolation of income groups within 
communities and geographical areas and the promotion of an 
increase in the diversity and vitality of neighborhoods through 
the spatial deconcentration of housing opportunities for persons of 
lower income and the revitalization of deteriorating or deterio- 
rated neighborhoods to attract persons of higher income ; 

(7) the restoration and preservation of properties of special 
value for historic, architectural, or esthetic reasons; and 

(8) the alleviation of physical and economic distress through 
the stimulation of private investment and community revitaliza_- 
tion in areas with population outmigration or a stagnating or 
declining tax base.^ 

1 Sec. 101 (a) of the Housing and Community Development Act of 1977, Public Law 
95-128, approved October 12, 1977, 91 Stat. 711, Inserted new subsection (c) (8). 



1048 



COMMUNITY DEVELOPMENT BLOCK GRANTS § 102 

It is the intent of Congress that the Federal assistance made available 
under this title not be utilized to reduce substantially the amount of 
local financial support for community development activities below 
the level of such support prior to the availability of such assistance, 
(d) It is also the purpose of this title to further the development 
of a national urban growth policy by consolidating a number of 
complex and overlapping programs of financial assistance to com- 
munities of varying sizes and needs into a consistent system of Federal 
aid which — 

(1) provides assistance on an annual basis, with maximum cer- 
tainty and minimum delay, upon which communities can rely in 
their planning; 

(2) encourages community development activities which are 
consistent with comprehensive local and areawide development 
planning ; 

(3) further achievement of the national housing goal of a 
decent home and a suitable living environment for every Ameri- 
can family; and 

( 4 ) fosters the undertaking of housing and community develop- 
ment activities in a coordinated and mutually supportive manner 
by Federal agencies and programs, as well as by communities.^ 

DEFINiriOXS 

Sec. 102. (a) As used in this title — 

(1) The term "unit of general local government" means any 
city, county, town, township, parish, village, or other general 
purpose political subdivision of a State; Guam, the Virgin 
Islands, and American Samoa, or a general purpose political sub- 
division thereof; a combination of such political subdivisions rec- 
ognized by the Secretary ; the District of Columbia ; and the Trust 
Territory of the Pacific Islands.^ Such term also includes a State 
or a local public body or agency (as defined in section 711 of the 
Housing and Urban Development Act of 1970), community asso- 
ciation, or other entity, which is approved by the Secretary for 
the purpose of providing public facilities or services to a new 
community as part of a program meeting the eligibility standards 
of section 712 of the Housing and Urban Development Act of 1970 
or title IV of the Housing and Urban Development Act of 1968. 

(2) The term "State" means any State of the United States, 
or any instrumentality thereof approved by the Governor; and 
the Commonwealth of Puerto Rico. 

(3) The term "metropolitan area" means a standard metropoli- 
tan statistical area as established by the Office of Management 
and Budo^et. 

(4) The term "metropolitan city" means (A) a city within a 
metropolitan area which is the central city of such area, as defined 
and used by the Office of Management and Budget, or (B) any 
other city, within a metropolitan area, which has a population of 
fifty thousand or more; except that any city which has been 
classified as a metropolitan city under clause CB) of this para- 
graph shall continue to be so classified until the decennial census 



1 Amended by section 101(h) of the Honsinp: and Communitv Development Act of 1977, 
Public Law 95-128, approved October 12, 1977, 91 Stat, llll, to read as set forth In 
the text. 

!" Amended by section 102(a) of the Houslns: and Community Development Act of 1977 
Public Law 95-128, approved October 12, 1977, 91 Stat. 1111, to read as set forth in 
the text. 

1049 



§ 102 COMMUNITY DEVELOPMENT BLOCK GRANTS 



I 



indicates that the population of such city is less than fifty 

thousand.^ . -, -, , 

(5) The term "city" means (A) any unit of general local gov- 
ernment which is classified as a municipality by the United States 
Bureau of the Census or (B) any other unit of general local 
government which is a town or township and which, in the deter- 
mination of the Secretary, (i) possesses powers and performs 
functions comparable to those associated with mimicipalities, (ii) 
is closely settled, and (iii) contains within its boundaries no 
incorporated places as defined by the United States Bureau of 
the Census which have not entered into cooperation agreements 
with such town or township to undertake or to assist in the under- 
taking of essential community development and housing assistance 
activities.^ 

(6) The term "urban county" means any county within a met- 
ropolitan area which (A) is authorized under State law to under- 
take essential community development and housing assistance 
activities in its unincorporated areas, if any, which are not units 
of general local government, and either^ (B) has a combined 
population of two hundred thousand or more (excluding the pop- 
ulation of metropolitan cities therein) in such unincorporated 
areas and in its included units of general local government (i) 
in which it has authority to undertake essential community de- 
velopment and housing assistance activities and which do not elect 
to have their population excluded or (ii) with which it has entered 
into cooperation agreements to undertake or to assist in the under- 
taking of essential community development and housing assist- 
ance activities, or (C) has a population in excess of one hundred 
thousand, a population density of at least five thousand persons 
per square mile, and contains within its boundaries no incorpo- 
rated places as defined by the United States Bureau of Census.^ 

(7) The term "population" means total resident population 
based on data compiled by the United States Bureau of the 
Census and referable to the same point or period in time. 

(8) The term "extent of poverty" means the number of persons 
whose incomes are below the poverty level. Poverty levels shall be 
determined by the Secretary pursuant to criteria provided by the 
Office of Management and Budget, taking into account and mak- 
ing adjustments, if feasible and appropriate and in the sole dis- 
cretion of the Secretary, for regional or area variations in income 
and cost of living, and shall be based on data referable to the 
same point or period in time. 

(9) The term "extent of housing overcrowding" means the 
number of housing units with 1.01 or more persons per room based 
on data compiled by the United States Bureau of the Census and 
referable to the same point or period in time. 

(10) ^ The term "age of housing" means the number of existing 
housing units constructed in 1939 or earlier based on data com- 



1 Amended by section 102(a) of the Housinjr and C«mmunitv Development Act of 1977, 
Public Law 95-128, approved October 12, 1977, 91 Stat, llil, to read as set forth in ' 
the text. 

2 Sec. 102(a) of the Housincr and Community Development Act of 1977. Public Law 95- 
128, approved October 12, 1977, amended paragraph (6) as set forth in the text. 

8 The Housing and Community Development Act 1977, Public Law 95-128, approved 
October 12, 1977, redesignated paragraphs (10), (11), (12), and (13) as paragraphs (17), 
(18), (19) and (20) ; and inserted after paragraph (9) new paragraphs (10), (11), (12), 
(13), (14), (15), and (16). 

1050 



COMMUNITY DEVELOPMENT BLOCK GRANTS § 102 

piled by the United States Bureau of the Census and referable to 
the same point or period in time. 

(11)^ The term "extent of growth lag" means the number of 
persons who would have been residents in a metropolitan city or 
urban county, in excess of the current population of such metro- 
politan city or urban county, if such metropolitan city or urban 
county had had a population growth rate between 1960 and the 
date of the most recent population count referable to the same 
point or period in time equal to the population growth rate for 
such period of all metropolitan cities. 

(12)^ The term ''housing stock" means the number of existing 
housing units based on data compiled by the United States Bureau 
of the Census and referable to the same point or period in time. 
(13)^ The term ''adjustment factor" means the ratio between 
the age of housing in the metropolitan city or urban county and 
the predicted age of housing in such city or county. 

(14)^ The term "predicted age of housing" means the arith- 
metic product of the housing stock in the metropolitan city or 
urban county multiplied times the ratio between the age of hous- 
ing in all metropolitan areas and the housing stock in all metro- 
politan areas. 

( 15) ^ The term "adjusted age of housing" means the arithmetic 
product of the age of housing in the metropolitan city or urban 
county multiplied times the adjustment factor. 

(16)^ The term "Indian tribe" means any Indian tribe, band, 
group, and nation, including Alaska Indians, Aleuts, and Eski- 
mos, and any Alaskan Native Village, of the United States, which 
is considered an eligible recipient under the Indian Self-Deter- 
mination and Education Assistance Act (Public Law 93-688) or 
under the State and Local Fiscal Assistance Act of 1972 (Public 
Law 92-512). 

(17)^ The term "Federal grant-in-aid program" means a pro- 
gram of Federal financial assistance other than loans and other 
than the assistance provided by this title. 

(18)^ The term "program period" means the period beginning 
January 1, 1975, and ending June 30, 1975, and the period cover- 
ing each fiscal year ^ thereafter. 

(19)1 'Pl^g {qj,^ "Community Development Program" means 
a program described in section 104(a) (2). 

(20)1 The term "Secretary" means the Secretary of Housing 
I and Urban Development. 

(b) ^\Tiere appropriate, the definitions in subsection (a) shall be 
based, with respect to any fiscal year, on the most recent data com- 
piled by the United States Bureau of the Census and the latest pub- 
lished reports of the Office of Management and Budget available ninety 



n^J^l ?o "fQ°4 ^^i Commumty Development Act of 1977, Public Law 95-128, approved 
nJwiJ?' JnJ^om^^'^'i,^-^^ paragraphs (10), (11), (12), and (13) as paragrkphs (17), 
{VV)[ (14): ?15) ind'(T6) '"'^"^^'^ ^^^"^ paragraph (9) new paragraphs (10)f (11), (12)1 
.r!J^L^^i\^^Vo.^^,k^% Fiscal Year Transition Act. Public Law 94-274, 90 Stat. 383, 
Tn vT^Q4^'■.'i^^• 19^6. provides for treatment of the transition quarter period between 
July 1. 19 <G, through September 30, 1976, as a fiscal year. 



1051 



103 



COMMUNITY DEVELOPMENT BLOCK GRANTS 



days prior to the beginning of such fiscal year. The Secretary may 
by reo-ulation change or otherwise modify the meaning of the term: 
defined in subsection (a) in order to reflect any technical change oi 
modification thereof made subsequent to such date by the Unitec 
States Bureau of the Census or the Office of Management and Budget, 

(o) One or more public agencies, including existing local public j 
agencies, may be designated by the chief executive officer of a State 
or a unit of general local government to undertake a Community: 
Development Program in whole or in part. 

(d) An urban county designated under subsection (a) (6) (B) (i)i 
of this section shall notify, prior to a date set by the Secretary foij 
each year, all incorporated units of general local government th(} 
populations of which are included in the population of such urbarjj 
county for purposes of this section of their opportunity to excludcj 
their population from such urban county. Any unit of general loca | 
government which has not elected to have its population so excluded ji 
shall have its population included within the population of such urbaif i 
county for purposes of this section until it, on its own initiative, elects I 
to exclude its population by notifying the urban county on or before 
a date set by the Secretary.^ 

AUTHORIZATION TO MAKE GRANTS 

Sec. 103. (a) (1) The Secretary is authorized to make grants t< 
States and units of general local government and Indian tribes ^ tc 
help finance Community Development Programs approved in accord 
ance with the provisions of this title. 

There are authorized to be appropriated for these purposes not t< 
exceed $3,500,000,000 for the fiscal year 1978, not to exceed $3,650,000 
000 for the fiscal year 1979, and not to exceed $3,800,000,000 for tb 
fiscal year 1980. Any amount authorized for any fiscal year under thi; 
section but not appropriated for such year may be appropriated fo 
any succeeding fiscal year.^ 

(2) Of the amounts approved in appropriations Acts pursuant t< 
paragraph (1), $50,000,000 for each of the fiscal years 1975 and 1976 

1 The Housing and Community Development Act of 1977, Public Law 95-128, approve 
October 12. 1977, amended section 102 of the Housing and Community Development c 
1974 by adding paragraph (d). 

2 The Housing and Community Development Act of 1977, Public Law 95-128, approve 
October 12, 1977, amended section 103(a)(1) of the Housing and Community Developmer 
Act of 1974, to include Indian tribes as being eligible to receive grants to finance con 
munity development programs. 

3 Sec. 103(a)(1) of the Housing and Community Development Act of 1977, Public La-- 
95-128, amended section 103(a) (1) striking everything after the first sentence which rea 
as follows : "The Secretary is authorized to incur obligations on behalf of the United State 
in the form of grant agreements or otherwise in amounts aggregating such sum, not t 
exceed $8,400,000,000, as may be approved in an appropriation Act. The amount so approve 
shall become available for obligation on January 1, 1975, and shall remain available- unt: 
obligated. There are authorized to be appropriated for liquidation of the obligations incurre 
under this subsection not to exceed $2,500,000,000 prior to the close of the fiscal year 197f 
which amount may be increased to not to exceed an aggregate of $5,450,000,000 prior to th 
close of the fiscal year 1976, and to not to exceed an aggregate of $8,400,000,000 prior t 
the close of the fiscal year 1977. Subject to the limitations contained in the precedin 
sentence, appropriations for — 

(A) grants under title VII of the Housing Act of 1961 ; 

(B) grants under sections 702 and 703 of Housing and Urban Development Act c 
1965 ; and 

(C) supplemental grants under title I of the Demonstration Cities and Metropolita 
Development Act of 1966, 

may be used, to the extent not otherwise obligated prior to January 1, 1975, for th 
liquidation of contracts entered into pursuant to this section" ; and inserting in lieu there( 
the material as set forth in the text. 



1052 



COMMUNITY DEVELOPMENT BLOCK GRANTS § 103 

$200,000,000 for the fiscal year 1977 (not more than 50 per centum of 
which amount may be used under section 106(d) (1) ), $350,000,000 for 
the fiscal year 1978 (of which not more than $175,000,000 may be used 
under such section), $265,000,000 for the fiscal year 1979 (of which 
not more than $25,000,000 may be used under such section), and 
$250,000,000 for the fiscal year 1980 (none of which may be used 
under such section) shall be added to the amount available for alloca- 
tion under section 106(d) and shall not be subject to the provisions 
of section 107.^ 

(b) In addition to the amounts made available under subsection (a) , 
and for the purpose of facilitating an orderly transition to the pro- 
U gram authorized under this title, there are authorize to be appropriated 
, not to exceed $50,000,000 for each of the fiscal vears 1975 and 1976, and 
i not to exceed $100,000,000 for each of the fiscal years 1977, 1978, 
1979 and 1980,^ for grants under this title for the financial settlement 
and, to the extent feasible, the completion of projects and programs 
assisted under the categorical programs terminated in section 116(a), 
2 primarily urban renewal projects assisted under the Housing Act of 
1 1919, to units of general local government which require supplemental 
assistance which cannot be provided ; ^ through the operation of the 
allocation provisions of section 106. No funds shall be made available 
under this subsection (1) for fiscal year 1978 unless the amount appro- 
priated under subsection (a) for fiscal year 1978 is at least $3,500,000,- 
td 000; (2) for fiscal vear 1979 unless the amount appropriated under 
5j subsection (a) for fiscal year 1979 is at least $3,650,000,000; or (3) for 
^ fiscal year 1980 unless the amount appropriated imder subsection (a) 
for fiscal year 1980 is at least $3,800,000,000.^ 

(c)^ There is authorized to be appropriated a sum not in excess of 

$100,000,000 for supplemental grant assistance under section 119 for 

each of the fiscal years 1978, 1979, and 1980, except that no funds shall 

J^ be made available for such purpose (1) for fiscal year 1978 unless the 

d amount appropriated under subsections (a) and (b) for fiscal vear 

1978 is at least $3,600,000,000; (2) for fiscal year 1979 unless'^the 

(j amount appropriated under subsections (a) and (b) for fiscal year 

■^ 1979 is at least $3,750,000,000; or (3) for fiscal year 1980 unless the 

amount appropriated under subsections (a) and (b) for fiscal year 

4 1980 is at least $3,900,000,000. 

(d)* Sums appropriated pursuant to this section shall remain avail- 
^ able until expended. 

(e)* To assure program continuity and orderly planning, the Sec- 
retary shall submit to the Congress timely requests for additional 
authorizations for the fiscal years 1978 through 1980. 



4 ^ Sof . 103(a')(2) of tlie Housincr and Community Development Act of 1977. Public Law 
al 95-128, amended section 103(a)(2) by deleting the following: "Of the amounts approved 
ti in appropriation Acts pursuant to paragraph (1) $50,000,000 for each of the fiscal years 
5i 1975 and 1970, and $200,000,000 for the fiscal year 1977, not more than 50 per centum of 
!i» which amount may be used under section 106(d) (1), shall be added to the amount available 
ti for allocation under section 106(d) and shall not be subject to the provisions of section 
]i 107" ; and inserting in lieu of the material as set forth in the text. 

I =Sec. 103(d)(1) of the Housing and Community Development Act of 1977, Public Law 
I 9r)-i28. amended section 103(b) by deleting "for the fiscal year 1977"; and inserting in 
oil lieu thereof the material as set forth in the text. 

^ ^ S'-os. 103 (d) (2) and (d) (3) of the Housing and Communitv Development Act of 1977, 
A Public Law 9r)-128. amended section 103(b) to read as set forth in the text. 

*Spc. 103(e) of the Housing and Community Development Act of 1977, Public Law 
"it 9o-i28. amended section 103 by redesignating subsections (c) and (d) as subsections (d) 
ol and (e), respectively, and by adding a new subsection (c). 



1053 



§104 COMMU]SnTY DEVELOPMENT BLOCK GRANTS 

APPLICATION AND REVIEW KEQUIREMENTS 

Sec. 104. (a) No grant may be made pursuant to section 106 or sec- 
tion 119 ^ unless an application shall have been submitted to the Sec- 
retary in which the applicant — . 

(1) sets forth a summary of a three-year community develop- 
ment plan which identifies community development and housing ^ 
needs, demonstrates a comprehensive strategy for meeting those 
needs, and specifies both short- and long-term community develop- 
ment objectives which have been developed in accordance with 
areawide development planning and national urban growth 
policies; . . . 

(2) formulates a program which (A) includes the activities 
to be undertaken to meet its community development needs and 
objectives, together with the estimated costs and general location 
of such activities, (B) indicates resources other than those pro- 
vided under this title which are expected to be made available 
toward meeting its identified needs, including activities, designed 
to revitalize neighborhoods for the benefit of low- and moderate- 
income persons,^ and objectives, and (C) takes into account appro- 
priate environmental factors ; 

(3) describes a program designed to — 

(A) eliminate or prevent slums, blight, and deterioration 
where such conditions or needs exist ; "^ 

(B) provide improved community facilities and public 
improvements, including the provision of supporting healthy 
social, and similar services where necessary and appropriate ;. 
and in a manner to insure fully op]:)oi*tunity for participation 
by, and benefits to, the handicapped ; and * 

(C) ^ improve conditions for low- and moderate-income 
persons residing in or expected to reside in the community as 
a result of existing or projected employment opportunities 
in the community (and those elderly persons residing in or 
expected to reside in the community), or as estimated in a 
community accepted State or regional housing opportunity 
plan approved by the Secretary ^ and foster neighborhood 
development in order to induce higher-income persons to re- 
main in, or return to, the community; 

(4) ' submits a housing assistance plan which — 

(A) accurately surveys the condition of the liousmg stock 
in the community and assesses the housing assistance needs of 
lower-income persons (including elderly and handicapped 
persons, large families, owners of homes requiring rehabilita- 
tion assistance ^ and persons displaced or to be displaced) re- 

nr^?oo- ■^■'^^^^^ ^^1 t^? Hoiising and Community Development Act of 1977, Public Law 

^^rl^^' ^?P/,^\^,^. October 12, 1977, inserted "or section 119". 

q^ 19S l^ii^lIPn^^i^^^^'^n^^ ^°^ Community Development Act of 1977, Public Law 

^%lo ioSr«W9?^..f''fr ^^' ^^•^^' amended section 104(a) (1) by insertinjr "and housing". 
Q'i llfi' iSnlniil^rv.L*i!i^ ?5"^.'^f-T^''^ Community Development Act of 1977, Public Law 

7\l7 iSff^w?^^.^)^?!^^^^' ^•^^^' amended section 104(a)(2) as set forth in the text, 
q^ 12r' IntinU^^nlJll^o'^fl^^rr^''^ Community Development Act of 1977, Public Law 

6 lp5;inS^1'^J??^ ?Q''^^°J'/L^^^ amended section 104(a) (.3) as set forth in the t*^xt. 

<)5-l2R «nninvi^MnflHL*?o ^n^l'''^.^''^ Community Development Act of 1977, Public Law" 
vo-iza, approved October 12, 1977, added subparagraph (C). 




text '""' " "^" ''"^ -v.^(a)(4) to read as set forth in the 7^ 



r ^^^^- -"^-^A^^L^t*^® Housing and Community Development Amendments of 1978. Public ? 
Law 9i>-o;>7. 92 Stat. 2080 (1978). amended Section 104 (a)(4)(A) as set forth in the" ^'' 



text. 

1054 



COMMUNITY DEVELOPMENT BLOCK GRANTS §104 

siding in or expected to reside in the community as a result of 
existing or projected employment opportunities in the com- 
munity (and those elderly persons residing in or expected to 
reside in the community), or as estimated in a community ac- 
cepted State or regional housing opportunity plan approved 
by the Secretary/ and identifies housing stock which is in a 
deteriorated condition. 

(B) specifies a realistic annual goal for the number of 
dwelling units or lower-income persons to be assisted, includ- 
ing (i) the relative proportion of new, rehabilitated, and 
existing dwelling unit^, including existing rental and owner 
occupied dwelling units to be upgraded and thereby pre- 
served 2 (ii) the sizes and types of housing projects and 
assistance best suited to the needs of lower-income persons in 
the community, and (iii) in the case of subsidized rehabilita- 
tion, adequate provisions to assure that a preponderance of 
persons assisted should be of low- and moderate-income, and 

(C) indicates the general locations of proposed housing 
for lower-income persons, with the objective of (i) furthering 
the revitalization of the community, including the restoration 
and rehabilitation of stable neighborhoods to the maximum 
extent possible, and the reclamation of the housing stock 
where feasible through the use of a broad range of techniques 
for housing restoration by local government, the private sec- 
tor, or community organizations, including provision of a 
reasonable opportunity for tenants displaced as a result of 
such activities to relocate in their immediate neighborhood, 
(ii) promoting greater choice of housing opportunities and 
avoiding undue concentrations of assisted persons in areas 
containing a high pro])ovtion of low-inco-ne persons, and 
(iii) assuring the availability of public facilities and services 
adequate to serve proposed housing projects ; 

(5) provides satisfactory assurances that the program will be 
conducted and administered in conformitv with Pubilc Law 
88-352 and Public Law 90-284 ; and 

(6)^ provides satisfactory assurances that, prior to submission 
of its application, it has (A) prepared and followed a written 
citizen participation plan which provides citizens an opportunity 
to participate in the development of the application, encourages 
the submission of views and proposals, particularly by residents 
of blighted neighborhoods and citizens of low- and moderate- 
income, provides for timely responses to the proposals submitted, 
and schedules hearings at times and locations which permit broad 
participation; (B) provided citizens with adequate information 
concerning the amount of funds available for proposed commu- 
nity development activities and housing activities, the range of 
activities that may be undertaken, and other important require- 



1 Sec. 103 (c") of the Honslnjr and Commuuitv Development Amendments of 1978. Public 
i\v 05-r)57, 02 Stat. 2080 (1978). amende<l Section 104(a)(4)(A) as set forth in the 

2 Amended bv Housing and Community Development Amendments of 1978, Section 
'3(b). Public Law ()ii-~)')7. 92 Stat. 2080 (1978). 

3 Sec 104(a)(5) of the Housing and Community Development Act of 19(7. approved 
'tober 12. 1977. amended section 104(a) by rewriting paragraph (6) as set forth in the 
xt. 



1055 



§ 104 COMMUNITY DEVELOPMENT BLOCK GRANTS 

ments; (C) held public hearings to obtain the views of citizens on 
community development and housing needs; and (D) providec 
citizens with an opportunity to submit comments concerning the 
community development performance of the applicant ; but noth 
ing in this paragraph shall be construed to restrict the responsi- 
bility and authority of the applicant for the development of the 
application and the execution of its community development 
program. 

(b) (1) Not more than 10 per centum of the estimated costs referred 
to in subsection (a) (2) which are to be incurred during any contract 
period may be designated for unspecified local option activities which 
are eligible for assistance under section 105(a) or for a contingency 
account for activities designated by the applicant pursuant to subsec- 
tion (a) (2). 

(2) Any grant under this title shall be made only on condition that 
the applicant certify to the satisfaction of the Secretary that its Com- 
munity Development Program has been developed so as to give 
maximum feasible priority to activities which will benefit low- and ^ 
moderate-income families or aid in the prevention or elimination of 
slums or blight. The Secretary may also approve an application 
describing activities which the applicant certifies and the Secretary 
determines are designed to meet other community development needs 
having a particular urgency because existing conditions pose a seri- 
ous and immediate threat to the health or welfare of the community, 
and other financial resources are not available. ^ 

(3) The Secretary may waive all or part of the requirements con- 
tained in paragraphs (1), (2), and (3) of subsection (a) if (A) thej J[ 
application for assistance is in behalf of a locality having a population ' 
of less than 25,000 according to the most recent data compiled by the 
Bureau of the Census which is located either (i) outside a standard' ^ 
metropolitan statistical area, or (ii) inside such an area but outside^ 
an "urbanized area" as defined by the Bureau of the Census (or as 
such definition is modified by the Secretary for purposes of this title) , 
(B) the application does not involve a comprehensive community 
development program, as determined by the Secretary, and * (C) the 
Secretary determines that, having regard to the nature of the activity 
to be carried out, sudh waiver is not inconsistent with the purposes of 
this title.* 

(4) The Secretary may accept a certification from the applicant that 
it has complied with the requirements of paragraphs (5) and (6) of 
subsection (a). 

(c) The Secretary shall approve an application for an amount which 
does not exceed the amount determined in accordance with section 
106(a) unless — 



1 Sec 104(b) (1) of the Housing and Community Development Act of 1977, Public Law 
95-128, approved October 12, 1977, amended section 104(b) (2) by deleting ^V)r" and insert- 

^2Spc^104(I)) (2) of the Housing and Community Development Act of 1977, Public Law 
95-128, approved October 12, 1977, amended section 104(b)(2) by rewriting the last 
sentence 

3 Sec 104 (c)(1) of the Housing and Community Development Act of 1977, Public Law 
95-128*, approved October 12, 1977, amended section 104(b)(3) by deleting clauses (B) 
and (C) and inserting in lieu thereof a new clause (B) to read as set forth in the text. 
< Se<>. 104(c)(2) of the Housing and Community Development Act of 1977. Public LaT« 
95-128, approved October 12, 1977, amended section 104(b)(3) by redesignating clause 
(D) as clause (C). 



1056 



K 



COMMUNITY DEVELOPMENT BLOCK GRANTS § 104 

(1) on the basis of significant facts and data, generally avail-" 
able and pertaining to community and housing needs and objec- 
tives, the Secretary determines that the applicant's description of 

i« such needs and objectives is plainly inconsistent with such facts 
or data ; or 

(2) on the basis of the application, the Secretary determines 
that the activities to be undertaken are plainly inappropriate to 
meeting the needs and objectives identified by the applicant pur- 
suant to subsection (a) ; or 

(3) the Secretary determines that the application does not 
comply with the requirements of this title with specific regard 
to the primary purposes of principally benefiting persons of low- 
and moderate-income or aiding in the prevention or elimination 
of slums or blight or meeting other community development needs 
having a particular urgency,^ or other applicable law or proposes 
activities which are ineligible under this title. The Secretary may 
not disapprove an application on the basis that such application 
addresses any one of the primary purposes described in paragraph 
(3) to a greater or lesser degree than any other, except that such 
application may bo disapproved if the Secretary determines that 
the extent to which a primary purpose is addressed is plainly 
inappropriate to meeting the needs and objectives which are con- 
sistent with the community's efforts to achieve the primary objec- 
tive of this title.2 

(d) Prior to the beginning of fiscal year 1977 and each fiscal year 

hereafter, each grantee shall submit to the Secretaiy a performance 

eport concerning the activities carried out pursuant to this title, 

:ogether with an assessment by the grantee of the relationship of 

hose activities to the objectives of this title and the needs and 

)bjectives identified in the grantee's statement submitted pursuant 

;6 subsection (a). The performance report shall include any citizen 

comments submitted pui^suant to sul^ection (a)(6)(D) and the 

tjiSecretary shall consider such comments, together with the views of 

I, )ther citizens and such other information as may be available, in 

y carrying out the provisions of this subsection.^ The Secretary shall, at 

i east on an annual basis, make such reviews and audits as may be 

lecessary or appropriate to determine whether the grantee has carried 

>ut a program substantially as described in its application, whether 

:hat program conformed to the requirements of this title and other 

ipplicable laws, and whether the applicant has a continuing capacity 

)| :o carry out in a timely manner the approved Community Develop- 

nent Progi'am. The Secretary may make appropriate adjustments in 

:he amount of the annual grants in accordance with his findings 

pursuant to this subsection. With respect to grants made pursuant to 

sections 106(d)(2) and 106(f)(1)(B), the Secretary may adjust, 

reduce, or withdraw grant funds, or take other action as appropriate 

' n accordance with such reviews and audits, except that funds already 



*Spc. 104(d) of the Housinp and Community Development Act of 1977. Public Law 
)5-128, approved October 12, 1977, amended section 104(c) (3) to read as set forth in the 

"".ext. 

:' ^The last sentence was added bv Sec. 103(d). Housing and Community Development 

''^Amendments of 197S. Public Law 9.j-5ri7. 92 Stat. 20S0 (1978). 

'J 3 Sec. 104(e) (1) of the Housing and Community Development Act of 1977, Public Law 
1)5-128, approved October 12. 1977, amended section 104(d) by inserting this last sentence. 



1057 



§ 104 COMMUNITY DEVELOPMENT BLOCK GRANTS 

expended on eligible activities under this title shall not be recaptured 
or deducted from future grants made to the recipient.^ 

(e) No grant may be made under this title unless the application 
there-for has been submitted for review and comment to an area wide 
agency under procedures established by the President pursuant to 
title ll of the Demonstration Cities and Metropolitan Development 
Act of 1966 and title IV of the Intergovernmental Cooperation Act 
of 1968. In addition, the Secretary may provide an opportunity for 
the State, in which a grant is to be made to a unit of general local gov- 
ernment under section 106(d) (2) or 106(f) (1) (B), to participate in 
the selection process for funding such grants. Such participation may 
include, as determined practicable by the Secretary, the incorporation 
of State growth and resource coordination policies in funding deci- 
sions on such grants, or such other arrangements, excluding adminis- 
tration of the grants referred to in the preceding sentence, as the Secre- 
tary deems appropriate.^ 

(f) An application subject to subsection (c), if submitted after any 
date established by the Secretary for consideration of applications, 
shall be deemed approved within 75 days after receipt unless the Sec- 
retary infonns the applicant of specific reasons for disapproval. Sub- 
sequent to approval of the application, the amount of the grant may 
be adjusted in accordance with the provisions of this title. 

(g) Insofar as they relate to funds provided under this title, the 
financial transactions of recipients of such funds may be audited by the 
General Accounting Office under such rules and regulations as may be 
prescribed by the Comptroller General of the United States. The rep- 
resentatives of the General Accounting Office shall have access to all 
books, accounts, records, reports, files, and other papers, things, or 
property belonging to or in use by such recipients pertaining to such 
financial transactions and necessary to facilitate the audit. 

(h) (1) In order to assure that the policies of the National 
Environmental Policy Act of 1969 are most effectively implemented in 
connection with the expenditure of funds under this title, and to assure 
to the public undiminished protection of the environment, the Secre- 
tary, in lieu of the environmental protection procedures otherwise 
applicable, may under regulations provide for the release of funds for 
particular projects to applicants who assume all of the responsibilities 
for environmental review, decisionmaking, and action pursuant to 
such Act that would apply to the Secretary were he to undertake such 
projects as Federal projects. The Secretary shall issue regulations 
to carry out this subsection only after consultation with the Council 
on Environmental Quality. 

(2) The Secretary shall approve the release of funds for projects 
subject to the procedures authorized by this subsection only if, at least 
fifteen days prior to such approval and prior to any commitment of 
funds to such projects other than for purposes authorized by section 
106(a) (12) or for environmental studios, the applicant has submitted 
to the Secretary a request for such release accompanied by a certifica-' 
tion which meets the requirements of paragraph (3). The Secretary's 
approval of any such certification shall be deemed to satisfy his respon- 
sibihties un der the National Environmental Policy Act insofar as 

1 Sec. 104(e)(2) of the Housinfr and Community Development Act of 1977 Public Law 
Oij-128. approved October 12, 1977, amended section 104(d) bv adding the last sentence 
set forth in the text. 

2 Sec. 104(f) of the Housing and Community Development Act of 1977. Public Law 
90-128, approved October 12, 1977. amended section 104(e) by adding this sentence. 

1058 



COMMUNITY DEVELOPMENT BLOCK GRANTS § 104 

hose responsibilities relate to the applications and releases of funds 
■ projects to be carried out pursuant thereto which are covered by 

uch certification. 
(3) A certification under the procedures authorized by this sub- 

ection shall — 

(A) be in a form acceptable to the Secretary, 

(B) be executed by the chief executive officer or other officer of 
the applicant qualified under regulations of the Secretary, 

(C) specify that the applicant has fully carried out its responsi- 
bilities as described under paragraph (1) of this subsection, and 

(D) specify that the certifying officer (i) consents to assume 
the status of a responsible Federal official under the National En- 
vironmental Policy Act of 1969 insofar as the provisions of such 
Act apply pursuant to paragraph (1) of this subsection, and (ii) 
is authorized and consents on behalf of the applicant and him- 
self to accept the jurisdiction of the Federal courts for the purpose 
of enforcement of his responsibilities as such an official. 

(i) ^(1) The Secretary shall, in making funds available to the re- 
ripionts of grants under this title, ]^ermit any such recipient to receive 
fimds, in one payment, in an amount not to exceed the total amount 
'esignnted in the recipient's application, and approved by the Secre- 
tary pursuant to this section, for use by the recipient for establishing 
L I'ovolving loan fund which is to be established in a private financial 
nstitution and which is to be used to finance rehabilitation activities 
hat are part of the recipient's community develoj^ment program. The 
Secretai-y may, as a condition of making such payment, require that 
he revolving loan fund be ultilized for the making of loans to finance 
rehabilitation activities in a manner consistent with this title. Reha- 
)ilitation activities authorized under this section shall begin within 
l'o]ty-five days after the Secretary has made such payment. 

(2) The Secretary shall establish standards for such cash pav- 
inents which will insure that the deposits result in appropriate benefits 
m support of the recipient's rehabilitation progi\am. These standards 
^]la]l bo designed to assure tliat the benefits to be derived from the 
local program include, at a minimum, one or more of the following 
elements, or such other criteria as determined by tlio Secretary — 

(A) leverage of community development block grant fimds so 
that participating financial institutions commit private funds for 
loans in the rehabilitation program in amounts substantially in 
excess of deposits of community development funds ; 

(B) commitment of private funds for rehabilitation loans at 
below-market interest rates or with repayment periods lengthened 
or at higher risk than would normally be taken; 

(C) provision of administrative services in support of the re- 
habilitation program by the participating lending institutions; 
and 

(D) interest earned on such cash deposits shall be used in a 
manner which supports the community rehabilitation progi-am. 

At the time of application, the Secretary shall review and approve all 
agreements with lending institutions which receive funds for commu- 
nty rehabilitation programs. Such approval shall be made on a case- 
by-case basis, and upon a determination by the Secretary that the 
agreement with the lending institution meet's minimum benefit stand- 
ards as list ed in this paragraph. 

fi'^'ioft- l^i^^K^^r^^^l ^°.^^*°f^^°<^ Community Development Act of 1977, PubUc Law 
»D-i2b, approved October 12, 1977, amended section 104 by adding subsection (i). 

1059 



§ 105 COMMUNITY DEVELOPMENT BLOCK GRANTS 

COMMUNITY DEVELOPMENT PROGRAM ACTIVITIES ELIGIBLE FOR 

ASSISTANCE 

Sec. 105. (a) A Community Development Proo-ram assisted under 
this title shall consist of activities which assist in carrying out a comp- 
rehensive strategy for meeting the community development and hous- 
ing needs and priorities identified pursuant to section 104, giving 
primary attention to activities benefitting low- and moderate-income 
persons and neighborhoods, aiding in the prevention of elimination of 
slums or blight, or meeting other community development needs having 
a particular urgency. These activities ^ may include only — 

(1) the acquisition of real property (including air rights, water 
rights, and other interests therein) which is (A) blighted, de- 
teriorated, deteriorating, undeveloped, or inappropriately devel- 
oped from the standpoint of sound community development and 
growth; (B) appropriate for rehabilitation or conservation ac- 
tivities; (C) appropriate for the preservation or restoration of 
historic sites, the beautification of urban land, the consei-vation of 
open spaces, natural resources, and scenic areas, the provision of 
recreational opportunities, or the guidance of urban development ; 
(D) to be used for the provision of public works facilities, and im- 
provements eligible for assistance under this title; or (E) to be 
used for other j)ublic purposes; 

(2) the acquisition, construction, reconstruction, or installation 
of public works, facilities, and site or other improvenients — in- 
cluding neighborhood facilities, centers for the handicapped,^ 
senior centers, historic properties, utilities, streets, street lights, 
water and sewer facilities, foundations and platforms for air 
rights sites, pedestrian malls and walkways, and parks, play- 
grounds, and recreation facilities, flood and drainage facilities in 
cases where assistance for such facilities under other Federal laws 
or programs is determined to be unavailable, and parking facil- 
ities, solid waste disposal facilities, and fire protection services 
and facilities which are located in or which serve designated com- 
munity development areas; 

(3) code enforcement in deteriorated or deteriorating areas in 
which such enforcement, together with public improvements and 
services to be provided, may be expected to arrest the decline of the 
area; 

(4) clearance, demolition, removal, and rehabilitation of build- 
ings and improvements (including interim assistance, and financ- 
ing public or private acquisition for rehabilitation, and rehabil- 
itation, of privately owned properties) ; ^ 

(5) special projects directed to the removal of material and ar- 
chitectural barriers which restrict the mobility and accessibility 
of elderly and handicapped persons; 

(6) payments to housing owners for losses of rental income 
incurred in holding for temporary periods housing units to be 
_utilized for the relocation of individuals and families displaced^. 

^ Sec. 105(a) of the Housing and Community Development Act of 1977. Public Law 
95-128, approved October 12, 1977, amended section 105(a) as set forth in the text. 

2 Sec. 15(b) of the Housing Authorization Act of 1976, Public Law 94-375, approved 
August 3, 1976, 90 Stat. 1067, amended section 105(a) (2) of the Housing and Community 
Development Act of 1974 by inserting "centers for the handicapped," immediately after 
"neighborhood facilities". 

2 Sec. 105(b) of the Housing and Community Development Act of 1977, Public Law 
95-128, approved October 12, 1977, amended the parenthetical expression in section 
105(a) (4) to read as set fortn In the text. 

1060 



COMMUNITY DEVELOPMENT BLOCK GRANTS § 105 

by program activities under this title ; 

(7) disposition (through sale, lease, donation, or otherwise) of 
any real property acquired pursuant to this title or its retention 
for public purposes; 

(8) provision of public services not otherwise available in areas 
where other activities assisted under this title are being carried 
out in a concentrated manner, if such services are determined to 
be necessary or appropriate to support such other activities and 
if assistance in providing or secunng such services under other 
applicable Federal laws or programs has been applied for and 
denied or not made available within a reasonable period of time, 
and if such services are directed toward (A) improving the com- 
munity's public services and facilities, including those concerned 
with the employment, crime prevention, child care, health, drug 
abuse, education, welfare, or recreation needs of persons residing 
in such areas, and (B) coordinating public and private develop- 
ment programs, and if such services have not been provided by 
the unit of general local government (through funds raised by 
such unit, or received by such unit from the State in which it is 
located) during any part of the twelve-month period immedi- 
ately preceding the date of application submission for funds 
which are to be made available under this title, and which are 
to be utilized for such services, unless the Secretary finds that the 
discontinuation of such services was the results of events not 
within the control of the applicant.^ 

(9) payment of the non-Federal share required in connection 
with a Federal grant-in-aid program undertaken as part of the 
Community Development Program; 

(10) payment of the cost of completing a project funded under 
title I of the Housing Act of 1949 ; 

(11) relocation payments and assistance for displaced individ- 
uals, families, businesses, organizations, and farm operations, 
when determined by the grantee to be appropriate to the com- 
munity development program ; - 

(12) activities necessary (A) to develop a comprehensive com- 
munity development plan, and (B) to develop a policy-planning- 
management capacity so that the recipient of assistance under 
this title may more rationally and effectively (i) determine its 
needs, (ii) set long-term goals and short-term objections, (iii) 
devise programs and activities to meet these goals and objectives, 
(iv) evaluate the progress of such programs in accomplishing 
these goals and objectives, and (v) carry out management, coordi- 
nation, and monitoring of activities necessary for effective plan- 
ning implementation ; ^ 

(13) payment of reasonable administrative costs and carrying 
charges related to the planning and execution of community de- 
velopment and housing activities, including the provision of in- 
formation and resources to residents of areas in which community 
development and housing activities are to be concentrated with 
respect to the planning and execution of such activities ; and ^ 



1 Sec. 105(d) of the Housing and Community Development Act of 1977. Public Law 
93-128, approved October 12, 1977, amended section 105(a) to read as set forth in the text. 

2 Section 105(a) (11) was amended to read as set forth in the text by Section 103(e), 
Housing and Community Development Amendments of 1978, Public Law 9o-557, 92 btat. 
2080 (1978). 

1061 



§ 106 COMMUNITY DEVELOPMENT BLOCK GRANTS 

^ (14) activities which are carried out by public or private non- 
profit entities when such activities are necessary or appropriate 
to meeting the needs and objectives of the community develop- 
ment plan described in section 104 (a)(1), including (A) acqui- 
sition of real property; (B) acquisition, construction, recon- 
struction, rehabilitation, or installation of (i) public facilities, 
site improvements, and utilities, and (ii) commercial or indus- 
trial buildings or structures and other commercial or industrial 
real property improvements; and (C) planning; and 

^ (15) grants to neighborhood-based nonprofit organizations 
local development corporations, or entities organized under sec- 
tion 301(d) of the Small Business Investment Act of 1958 to 
carry out a neighborhood revitalization or community economic 
development project in furtherance of the objectives of section 
101(c). 
(b) Upon the request of the recipient of a grant under this title, 
the Secretary may agree to perform administrative services on a reim- 
bursable basis on behalf of such recipient in connection with loans or 
grants for the rehabilitation of properties as authorized under sub- 
section (a) (4). 

ALLOCATION AND DISTRIBUTION OF FUNDS 

Sec. 106. (a) Of the amount approved in an appropriation Act under 
section 103(a) for grants in any year (excluding the amount provided 
for use in accordance with sections 103 (a) (2) and 107) , 80 per centum 
shall be allocated by the Secretary to metropolitan areas. Except as 
provided in subsections (c) and (e), each metropolitan city and urban 
county shall, subject to the provisions of section 104 and except as 
otherwise specifically authorized, be entitled to annual grants from 
such allocation in an aggregate amount not exceeding the great-er of 
its basic amount computed pursuant to paragraph (1) or (2)^ of sub- 
section (b) or its hold-harmless amount computed pursuant to subsec- 
tion (g). 

(b) (1) The Secretary shall determine the amount to be allocated to 
each metropolitan city which shall be the greater of an amount that 
bears the same ratio to the allocation for all metropolitan areas as 
either — 

(A) the average of the ratios between — 

(i) the population of that city and the population of all 
metropolitan areas ; 

(ii) the extent of poverty in that city and the extent of 
poverty in all metropolitan areas ; and 

(iii) the extent of housing overcrowding in that city and 
the extent of housing overcrowding in all metropolitan areas ; 
or 

(B) the average of the ratios between — 
(i) the extent of growth lag in that city and the extent of 

growth lag in all metropolitan cities ; 

M 

iSec. 105(d) of the Housing and Community Development Act of 1977, Public Law 
90-128, approved October 12, 1977, amended section 105(a) by adding new paragraphs 
(14) and (15). 

2 Sec. 106(a) of the Housing and Community Development Act of 1977, Public Law 
95-128, approved October 12, 1977, amended section 106(a) by deleting "(2) or (3)" and 
inserting in lieu thereof "(1) or (2)". 



1062 



J 



COMMUNITY DEVELOPMENT BLOCK GRANTS § 106 

(ii) the extent of poverty in that city and the ejrtent of 
poverty in all metropolitan areas ; and 

(iii) the age of housing in that city and the age of housing 
in all metropolitan areas. 

(2) The Secretary shall determine the amount to be allocated to each 
urban county, which shall be the greater of an amount that bears the 
same ratio to the allocation for all metropolitan areas as either — 

(A) the average of the ratios between — 

(i) the population of that urban county and the popula- 
tion of all metropolitan areas ; 

(ii) the extent of poverty in that urban county and the 
extent of poverty in all metropolitan areas ; and 

(iii) the extent of housing overcrowding in all metro- 
politan areas ; or 

(B) the average of the ratios between — 

(i) the extent of growth lag in that urban county and the 
extent of growth lag in all metropolitan cities and urban 
counties ; 

(ii) the extent of poverty in that urban county and the 
extent of poverty in all metropolitan areas ; and 

(iii) the age of housing in that urban county and the age 
of housing in all metropolitan areas. 

(3) In determining the average of ratios under paragraphs (1) (A) 
and (2) (A), ratio involving the extent of poverty shall be counted 
twice, and each of the other ratios shall be counted once; and in deter- 
mining the average of ratios under paragraphs (1) (B) and (2) (B), 
the ratio involving the extent of growth lag shall be counted once, the 
ratio involving the extent of poverty shall be counted one and one-half 
times, and the ratio involving the age of housing shall be counted two 
and one-half times.^ 

(4) In computing amounts or exclusions under this section with 
respect to any urban county there shall be excluded units of general 
local government located in the county (A) wliich are entitled to ^ hold- 
harmless grants pursuant to subsection (h), or (B) the populations of 
which are not counted in determining the eligibility of the urban 
county to receive a grant under this subsection. 

(c) With respect to fund? approved for distribution to a metro- 
politan city or urban county under this section during fiscal years 
1975, IDTG, and 1977 ^ the basic grant amount of such city or county 
as computed under subsection (b) shall be adjusted only for such 
funds approved for distribution in fiscal years 1975, 1976, and 1977 ^ as 
provided in this subsection if the amount so computed for the first 
such year exceeds the city's or county's hold-harmless amount as deter- 
mined under subsection (g). Such adjustment shall be made so that — 



1 Sec. 106(b) of the Housing and Community Development Act of 1977, Public Law 
95-128, approved October 12, 1977, amended section 106(b) by deleting: paragraphs (1) 
through (4) and inserting in lieu thereof new paragraphs (1) through (3) as set forth in 
the text. 

2 Sec. 106(c) of the Housing and Community Development Act of 1977, Public Law 
95-128, approved October 12, 1977, amended section 106(b) by deleting "(5)" and insert- 
ing in lieu thereof "(4)", and by deleting "receive" and inserting in lieu thereof "ar» 
entitled to". 

3 Sec. 106(d) of the Housing nnd Communitv Development Act of 1977. Public Law 
95-128, approved October 12, 1977, amended section 106(c) by deleting "During the first 
three years for which funds are approved for distribution to a metropolitan city or urban 
county under this section" and inserting in lieu thereof the material set forth in the text. 

♦Section 106(d)(2) of the Housiner and Communitv Development Act of 1077. Public 
Law 95-128, approved October 12, 1977, amended section 106(c) by inserting "only for 
such funds approved for distribution in fiscal years 1975, 1976, and 1977". 

1063 

'+5-705 - VS - i^ 



§ 106 COMMUNITY DEVELOPMENT BLOCK GRANTS 

(1) the amount for the first year does not exceed one-third of 
tlie lull basic grant amount computed under subsection (b), or 
the hold-harmless amount, whichever is the greater, 

(2) the amount for the second year does not exceed two-thirds 
of the full basic grant amount computed under subsection (b), or 
the hold-harmless amount, or the amount allowed under para- 
graph (1) of this subsection, whichever is the greatest, and 

(3) the amount for thr^ third year does not exceed the full basic 

frant amount computed under subsection (b). 
1(1) Any portion of the amount allocated to metropolitan 
areas under the first sentence of subsection (a) which remains after 
the allocation of grants to metropolitan cities and urban counties in 
accordance with subsection (b) and any amounts added in accordance 
with the provisions of section 103(a)(2) shall be allocated by the 
Secretary, first, for grants to metropolitan cities, urban counties, and 
other units of general local government within metropolitan areas to 
meet their hold-harmless needs as determined under subsections (g) 
and (h) , and second, in accordance with the provisions of paragraph 

(2) Any portion of such amounts which remains after applying 
the provisions of paragraph (1) shall be utilized by the Secretary for 
grants to units of general local government within metropolitan areas 
(other than metropolitan cities and urban counties), and States for 
use within metropolitan areas, allocating for the metropolitan areas 
of each State the greater of an amount that bears the same ratio to the 
allocation for such areas of all States available under this paragraph 
as either — 

(A) the average of the ratios between — 

(i) the population of the metropolitan areas in that State 
and the population of the metropolitan areas of all States ; 

(ii) the extent of poverty in the metropolitan areas in that 
State and the extent of poverty in the metropolitan areas of 
all States ; and 

(iii) the extent of housing overcrowding in the metro- 
politan areas in that State and the extent of housing over- 
crowding in the metropolitan areas of all States ; or 

(B) the average of the rations between — 

(i) the age of housing in the metropolitan areas in that 

State and the age of housing in the metropolitan areas of all 

States ; 

(ii) the extent of poverty in the metropolitan areas in 

that State and the extent of poverty in the metropolitan areas 

of all States ; and 

(iii) the population of the metropolitan areas in that State 

and the population of the metropolitan areas of all States. 
In determining the average of the ratios under subparagraph (A), the 
ratio involving the extent of poverty shall be counted twice and each 
of the other ratios shall be counted once ; and in determining the aver- 
age of the ratios under subparagraph (B) , the ratio involving the age 
of housing shall be counted two and one-half times, the ratio involving 
the extent of poverty shall be counted one and one-half times, and the 
ratio involving population shall be counted once. The Secretary shall, 

^ Soc. lOG(o) of the Housing? and Community Development Act of 1977, Public Law 
95-128, approved October 12, 1977. amended section 106(d) to read as set forth in the 
text. 

1064 



COMMUNITY DEVELOPMENT BLOCK GRANTS § 106 

m order to compensate for the discrepancy between the total of the 
amounts to be allocated under this paragraph and the total of the 
amounts available under such paragraph, make a pro rata reduction 
of each amount allocated to the metropolitan areas in each State under 
such paragraph so that the metropolitan areas in each State will re- 
ceive an amount which represents the same percentage of the total 
amount available under such paragraph as the percentage which the 
metropolitan areas of the same State would have received under such 
paragraph if the total amount available under that paragraph had 
equaled the total amount which was allocated under that paragraph. 

(3) If the Secretary approves a grant under paragraph (2) to a 
unit of general local government which has a comprehensive com- 
munity development program with provision for lower-income hous- 
ing, the Secretary may make a multiyear commitment, up to three 
years, to any such unit of general local government for specified grant 
amounts, subject to the availability of appropriations. In determining 
whether to make such a commitment to a imit of general local govern- 
ment, the Secretary shall give special consideration to those 
communities presently carrying out comprehensive community devel- 
opment programs, which are subject to the provisions of subsection 
(n)(2), before making new commitments. In making grants under 
paragraph (2), the Secretary shall establish for each participating 
unit of general local government an annual grant at an amount mean- 
ingful to the size of the unit and the program identified, and shall 
consider such factors as the unit's engaging in economic redevelop- 
ment activities, past performance of the unit in commimity develop- 
ment activities, prior and present funding levels under this title, the 
function of the unit as a regional center of economic development and 
activity, impact on the unit's growth of national policy or direct Fed- 
eral program decisions, the potential for having increased employment 
withm such unit as a result of community development activity, the 
physical and economic deterioration within the unit, the age of hous- 
ing stock and the extent of poverty within the unit, the extent to which 
the unit's activity or program of activities is necessary to alleviate a 
serious threat to health or safety, the capacity of the unit to carry out 
such programs, and any other factors deemed, by the Secretary, to be 
relevant to carrying out the purposes of this title. The Secretary shall 
make grants under paragraph (2) in such a manner as to insure that a 
reasonable proportion of gi'ants is available to applicants which are 
not seeking funding for comprehensive community development pro- 
grams. The Secretary may accept and approve commitments for 
annual grants based on comprehensive community development pro- 
grams commencing in future fiscal years subject only to the avail- 
ability of appropriations. In computing amounts imder paragraph 
(2) , there shall be excluded metropolitan cities, urban counties, Indian 
tribes, and units of general local government which are entitled to 
hold-harmless grants pursuant to subsection (h) . 

(e) Any amounts allocated to a metropolitan city or urban county 
pursuant to the preceding provisions of this section which are not 
applied for during a program period or which are not approved by 
the Secretary, and any other amounts allocated to a metropolitan area 
which the Secretary determines, on the basis of the applications and 
other evidence available, are not likely to be fully obligated within a 



1065 



§106 COMMUNITY DEVELOPMENT BLOCK GRANTS 

reasonable time,^ shall be reallocated ^ for use by States, metropolitan 
cities, urban counties, or units of general local government, first, in 
any metropolitan area in the same State, and second, in any other 
metropolitan area. The Secretary shall review determinations under 
this subsection from time to time as appropriate with a view of as- 
suring maximum use of all available funds in the period for which 
such funds were appropriated. 

(f)^(l) Of the amount approved in an appropriation Act under 
section 103(a) for grants in any year (excluding the amount provided 
for use in accordance with sections 103 (a)(2) and 107) , 20 per centum 
shall be allocated by the Secretary — 

(A) first, for grants to units of general local government out- 
side of metropolitan areas to meet their hold-harmless needs as 
determined under subsection (h) ; and 

(B) second, any portion of such amount which remains after 
applying the provisions of subparagraph (A) shall be utilized by 
the Secretary for grants to units of general local government out- 
side of metropolitan area and States for use outside the metro- 
politan areas, allocating for the nonmetropolitan areas of each 
State the greater of an amount that bears the same ratio to the 
allocation for such areas of all States available under this sub- 
paragraph as either — 

(i) the average of the ratios between — 

(I) the population of the nonmetropolitan areas in 
that State and the population of the nonmetropolitan 
areas of all States ; 

(II) the extent of poverty in the nonmetropolitan 
areas in that State and the extent of poverty in the non- 
metropolitan areas of all States ; and 

(III) the extent of housing overcrowding in the non- 
metropolitan areas in that State and the extent of hous- 
ing overcrowding in the nonmetropolitan areas of all 
States ; or 

(ii) the average of the ratios between — 

(I) the age of housing in the nonmetropolitan areas 
in that State and the age of housing in the nonmetropoli- 
tan areas of all States ; 

(II) the extent of poverty in the nonmetropolitan 
areas in that State and the extent of poverty in the non- 
metropolitan areas of all States ; and 

(III) the population of the nonmetropolitan areas in 
that State and the population of the nonmetropolitan 
areas of all States. 

In determining the average of the ratios under clause (i) of subpara- 
graph (B) the ratio involving the extent of poverty shall be counted 
twice and each of the other ratios shall be counted once; and in deter- 
mining the average of the ratios under clause (ii) of subparagraph 
(B), the ratio involving the age of housing shall be counted two and 
one-half times, the ratio involving the extent of poverty shall be" 

«^^?J^S- 106(f) of the Housing and Community Development Act of 1977. Public Law 
95-128, approved October 12, 1977, amended section 106(e) by deletine "durine such 
program period" and inserting in lieu thereof the material as set forth in the text 
n«%^«?^' 106(f) of the Housing and Community Development Act of 1977, Public' Law 
95-128, approved October 12, 1977, amended section 106(e) by deleting "during the same 

o^^?l« ^^^^^^ ^Vn?t u^® ?i°H^^Sf ^^^ Community Development Act of 1977, Public Law 
95-128, approved October 12, 1977, amended section 106(f) by deleting paragraph (1) and 
inserting in lieu thereof a new paragraph (1) and (2). yaitterapu ^±) ana 

1066 



I, 



COMMUNITY DEVELOPMENT BLOOK GRANTS §106 

counted one and one-half times, and the ratio involving population 
shall be counted once. The Secretary shall, in order to compensate for 
the discrepancy between the total of the amounts to be allocated under 
subparagraph (B) and the total of the amounts available under such 
subpara<]^raph, make a pro rata reduction of each amount allocated to 
the nonmetropolitan areas in each State under such subparagraph so 
that the nonmetropolitan areas in each State will receive an amount 
which represents the same percentage of the total amount available 
under such subparagraph as the percentage which the nonmetropoli- 
tan areas of the same State would have received under such subpara- 
graph if the total amount available under such subparagraph had 
equaled the total amount which w^as allocated under such subpara- 
graph. 

(2)^ If the Secretary approves a grant under paragraph (1) (B) 
to a unit of general local government which has a comprehensive com- 
munity development program with provision for lower-income hous- 
ing, the Secretary may make a multiyear commitment, up to three 
years, to any such unit of general local government for specified ^rant 
amounts, subject to the availability of appropriations. In determining 
whether to make such a commitment to a unit of general local govern- 
ment, the Secretary shall give special consideration to those commu- 
nities presently carrying out comprehensive community development 
programs, which are subject to the provisions of subsection (h) (2), 
before making new commitments. In making grants under x^aragraph 
(1)(B), the Secretary shall establish for each participating unit of 
general local government an annual grant at an amount meaningful 
to the size of the unit and the program identified, and shall consider 
such factors as the unit's engaging in economic redevelopment activi- 
ties, past performance of the unit in community development activi- 
ties, prior and present funding levels under this title, the function of 
the unit as a regional center of economic development and activity, 
impact on the unit's growth of national policy or direct Federal pro- 
gram decisions, the potential for having increased employment within 
such unit as a result of community development activity, the physical 
and economic deterioration within the unit, the age of housing stock 
and the extent of poverty within the unit, the extent to which the 
unit's activity or program activities is necessary to alleviate a serious 
threat to health or safety, the capacity of the unit to carry out such 
programs, and any other factors deemed, by the Secretary, to be rele- 
vant to carrying cut the purposes of this title. The Secretary shall 
make grants under paragraph (1) (B) in such a manner as to insure 
that a reasonable proportion of grants is available to applicants which 
are not seeking funding for comprehensive community development 
programs. The Secretary may accept and approve commitments for 
annual grants based on comprehensive community development pro- 
grams commencing in future fiscal years subject only to the avail- 
ability of appropriations. In computing amounts under paragraph 
(1)(B), three shall be excluded units of general local government 
which are entitled to hold-harmless grants pursuant to subsection (h) 
and Indian tribes. 

(3)^ Any amounts allocated to a unit of general local government 

ar^?«o 1^6(p)(2) Of the Housing and Community Dovelopment Act of 1977, Public Law 
/ov -^\ ?'^P''^^®<^ October 12, 1977, amended section 106(f) by adding a new paragraph 
(2) and by redesignating paragraph (2) as paragraph (3). 



1067 



§ 106 COMMUNITY DEVELOPMENT BLOCK GRANTS 

under paragraph (1) which are not applied for during a program 
period or which are not approved by the Secretary, and any amounts 
allocated to the nonmetropolitan areas of a State under paragraph 
(1) (B) -which the Secretary determines, on the basis of applications 
and other evidence available, are not likely to be fully obligated within 
a reasonable time/ shall be reallocated as soon as practicable ^ to the 
nonmetropolitan areas of other States. The Secretary shall review 
determinations under this paragraph from time to time with a view to 
assuring maximum use of all available funds in the program period 
for which such funds were appropriated. 

(g) (1) The full hold-harmless amount of each metropolitan city 
or urban county shall be the sum of (i) the sum of the average during 
the five fiscal years ending prior to July 1, 1972, of (1) commitments 
for grants (as determined by the Secretary) pursuant to part A of 
title I of the Housing Act of 1949; (2) loans pursuant to section 312 
of the Housing Act of 1964; (3) grants pursuant to sections 702 and 
703 of the Housing and Urban Development Act of 1965; (4) loans 
pursuant to title II of the Housing Amendments of 1955; and (5) 
grants pursuant to title YII of the Housing Act of 1961; and (ii) 
the average annual grant, as determined by the Secretary, made in 
accordance with part B of title I of the Housing Act of 1949 during 
the fiscal years ending prior to July 1, 1972, or during the fiscal year 
1973 in the case of a metropolitan city or urban county which first 
received a grant under part B of such title in such fiscal year. In 
the case of a metropolitan city or urban county which has participated 
in the program authorized under section 105 of the Demonstration 
Cities and Metropolitan Development Act of 1966 and which has been 
funded or extended in the fiscal year 1973 for a period ending after 
June 30, 1973, determinations of the hold-harmless amount of such 
metropolitan city or urban county for the following specified years 
shall be made so as to include, in addition to the amounts specified 
in clauses (i) and (ii) of the preceding sentence, the following per- 
centages of the average annual grant, as determined by the Secretary 
made in accordance with such section during fiscal years ending prior 
to July 1,1972— 

(A) 100 per centum for each of a number of years which, when 
added to the number of funding years for which the city or county 
received grants under such section 105, equals five ; 

(B) 80 per centum for the year immediately following year five 
as determined pursuant to clause ( A) , 

(C) 60 per centum for the year immediately following the year 
provided for in clause (B) ; and 

(D) 40 per centum for the year immediately following the year 
provided for in clause (C) . 

For the purposes of this paragraph the average annual grant under 
part B of title I of the Housing Act of 1949 or under section 105 of the 
Demonstration Cities and Metropolitan Development Act of 1966 shall 
be established by dividing the total amount of grants made to a par- 
ticipant under the program by the number of months of program 



1 Sec. 106(g) (.']) of the Housing and Community Development Act of 1977, Public Law 
1)5-128, approved October 12, 1977, amended section 106(f) by deleting "during such period" 
and inserting in lieu thereof "within a reasonable time' . 

2 Sec. 106(g) (4) of the Housing and Community Development Act of 1977. Public Law 
95-128, approved October 12, 1977, amended section 106(f) by deleting "during the same 
period". 



1068 



COMMUNITY DEVELOPMENT BLOCK GRANTS §106 

activity for which funds were authorized and multiplying the result 
by twelve. 

(2) During the fiscal years 1975, 1976, and 1977, the hold-harmless 
amount of any metropolitan city or urban county shall be the full 
amount computed for the city or county in accordance with paragraph 
(1). In the fiscal years 1978, 1979, and 1980, if such amount is greater 
than the basic grant amount of the metropolitan city or urban county 
for that year, as computed under subsection (b) (1) (A) or (B), or 
(2) (A) or (B) ,^ it shall be reduced so that — 

(i) in the fiscal year 1978, the excess of the hold-harmless 
amount over the basic grant amoimt as computed under subsection 
(b)(1) (A) or (B) or (2^ (A) or (B),^ shall equal two-thirds 
of the difference between the amount computed under paragraph 
( 1 ) and the basic grant amount for such year, 

(ii) in the fiscal year 1979, the excess of the hold-barmless 
amount over the basic grant amount as computed under subsection 
(b)(1) (A) or rB), or (2) (A) or (B),^ shall equal one-third 
of the difference oetween the amount computed xmder paragraph 
( 1 ) and the basic grant amount for such year, and 

(iii) in the fiscal year 1980, there shall be no excess of the hold- 
harmless amount over the basic grant amount, 
(h) (1) Any unit of general local government which is not a metro- 
politan city or urban county shall, subject to the provisions of section 
104 and except as otherwise specifically authorized, be entitled to 
grants under this title for any year in an aggregate amount at least 
equal to a hold-harmless amount as computed under the provisions of 
subsection (g) (1) if, during the five-fiscal-year period specified in the 
first sentence of subsexition (g) (1) (or during the fiscal year 1973 in the 
case of a locality which first received a grant for a neighborhood 
development program in that year), one or more urban renewal proj- 
ects, code enforcement programs, neighborhood development pro- 
grams, or model cities programs were being carried out bv such unit of 
general local government pursuant to commitments for assistance 
entered into during such period under title I of the Housing Act of 
1949 or title I of the Demonstration Cities and Metropolitan Devel- 
opment Act of 1966. 

(2) In the fiscal years 1978, 1979, and 1980, in determining the hold- 
harmless amount of units of general local government qualifying under 
this subsection, tlitj second sentence of subsection (g) (2) shall be ap- 
plied as though such units were metropolitan cities or urban counties 
with basic grant amounts of zero. 

(i) ' In exchiding tlio data of units of general local government 
which are entitled to ^ a hold-harmless grant pursuant to subsection 
(h) from the computations described in subsection (b) (4),^ (d), and 
(f ) of this section, the Secretarv shall exclude onlv two-thirds of such 
data tor the fiscal year 1978 and one-third of such data for the fiscal 
year 1979. 

1 Sw. 106(h) (2) of the Hons^ni? and CoTnmunlty Devplopment Act of 1977, Public Law 
95-128, approved Ocotber 12, 1977, amended section ie6(«) (2), clauses (i) and (U) by 
ImwTtlng "as computed under subsection (b) (1) (A) or (B), or (2) (A) or -(B)". 

2 Sec. 106(h) of the Housing and Community Development Act of 1977, Public Law 
95-128, amended section 106(g)(2) by deleting "(b) (2) and (3)" and inserting in lieu 
thereof "b(l) (A) or (B), or (2) (A) or (B)". 

3 Sec. 106(i) of the Housing and Community Development Act of 1977. Public Law 
95-128, approved October 12, 1977, amended sections 106 (i) and (j) to read as set forth In 
the text. 

1069 



§107 COMMUNITY DEVELOPMENT BLOCK GRANTS 

(j) Any unit of general local government eligible for a hold-hr^rro 
less grant pursuant to subsection (h) may, by such date as the Se^i- 
retary shall determine/ irrevocably waive its eligibility for a hold- 
harmless grant for a single year " under such subsection. In the c?se of 
such a waiver the unit of general local government shall not be ex- 
cluded from the computations described in subsections (b) (4),^ (d), 
and (f) of this section. 

(k) The Secretary may ^x such qualification or submission dates as 
he determines are necessary to permit the computations and deter- 
minations required by this section to be made in a timely manner, 
and all such computations and determinations shall be final and 
conclusive. 

(1) ^ Xot later than September 30, 1978, the Secretary shall report 
to the Congress with respect to the adequacy, effectiveness, and equity 
of the formula used for allocation of funds under this title, with spe- 
cific analysis and recommendation as to the feasibility of utilizing 
factors of impaction (such as adjusted age of housing and extent of 
poverty) as a measurement consideration, and the feasibility of utiliz- 
ing a single formula based on the current factors or others, including 
regional or area differences in income and cost of living. As used in this 
subsection, the term "impaction" means the intensity, measured in 
terms of absolute numbers and proportions of each needs factor. 

(m) ^ In the event that the total amount available for distribution 
under this section in fiscal year 1978 or fiscal year 1979 is insufficient 
to meet all basic grant and hold-harmless entitlement needs as pro- 
vided pursuant to this section, and funds are not otherwise appropri- 
ated to meet such deficiency, the Secretary shall meet the deficiency 
through a pro rata reduction of (1) all basic grant and hold-harmless 
entitlement amounts, and (2) funds available under section 106(d) (2) 
(including amounts provided for use under section 103(a) (2)) and 
section 106(f)(1)(B). 

DISCRETIONARY FUND 

Sec. 107. (a) Of the total amount of authority to enter into con- 
tracts approved in appropriation Acts under section 103(a)(1) for 
each of the fiscal years 1975, 1976, 1977, 1978, 1979 and 1980,= an 
amount equal to 3 per centum ^ thereof shall be reserved and set aside 
in a special discretionary fund for use by the Secretary in making 
grants (in addition to any other grants which may be made under 
this title to the same entities or for the same purposes) — 

(1) in behalf of new communities assisted under title VII of 

1 Sec. 106 (i) of the Housing and Community Development Act of 1977, Public Law 
J>5-128. approved October 12, 1977, amended sections 106(i) and (j) to read as set forth in 
the text. 

^ Sec. 106(h)(2) of the Housing and Community Development Act of 1977, Public Law 
95-128, approved October 12, 1977, amended section 106(g)(2), clauses (i) and (ii) by 
inserting "as computed under subsection (b)(1) (A) or (B), or (2) (A) or (B)". 

3 Sec. 106(k) of the Housing and Community Development Act of 1977, Public Law 
95-128. approved October 12, 1977. amended section 106(1) to read as set forth in the 
text. Prior to amendment section 106(1) began "Not later than March 31, 1977, the Secre- 
tary shall make a report to Congress * * *." 

* Sec. 106(1) of the Housing and Community Development Act of 1977. Public LaAV 
95-128. approved October 12, 1977, amended section 106 by adding new subsection (m) 
as set forth in the text. 

^ Sec. 107 of the Housing and Community Development Act of 1977, Public Law 95-128. 
approved October 12, 1977, amended section 107 by striking out "and 1977," and inserting 
in lieu thereof "1977. 1978, 1979. and 1980.". 

"Sec. 107 of the Housing and Community Development Act of 1977. Public Law 95-128, 
approved October 12. 1977, amended section 107(a) by deleting '2 per centum" and in- 
serting in lieu thereof "8 per centum". 

1070 



COMMUNITY DEVELOPMENT BLOCK GRANTS § 107 

the Housing and Urban Development Act of 1970 or title IV of 
the Housing and Urban Development Act of 1968 or ^ in behalf 
of new community projects assisted under title X of the National 
Housing Act which meet the eligibility standards set forth in 
title VII of the Housing and Urban Development Act of 1970 
and which were the subject of an application or preapplication 
under such title prior to January 14, 1975 ; 

(2) to States and units of general local government which join 
in carrying out housing and community development programs 
that are areawide in scope; 

(3) in Guam, the Virgin Islands, American Samoa, and the 
Trust Territory of the Pacific Islands ; 

(4) to States and units of general local government for the 
purpose of demonstrating innovative community development 
projects; 

(5) to States, units of general local government, and Indian 
tribes ^ for the purpose of meeting emergency community develop- 
mont needs caused by federally recognized disaster; ^ 

(6) to States and units of general local government where the 
Secretary deems it necessary to correct inequities resulting from 
the allocation provisions of section 106; ^ 

(7) ^ to Indian tribes ; and 

(8)^ to States, units of general local government, Indian tribes, 
or areawide planning organizations for the purpose of providing 
technical assistance in planning, developing, and administering 
assistance under this title. The Secretary may also provide, di- 
rectly or through contracts, technical assistance under this para- 
graph to such governmental units, or to a group designated by 
such a governmental unit for the purpose of assisting that govern- 
mental unit to carry out its Community Development Program."* 

(b) Not more than 15 per centum ^ of the total amount reserved 
and set aside in the special discretionary fund under subsection (a) 
for each year may be used for grants to meet emergency disaster 
needs under subsection (a)(5). 

(c) Amounts reserved and set aside in the special discretionary 
fund under subsection (a) in any fiscal year but not used in such 
year shall remain available for use in accordance with subsections 
(a) and (b) in subsequent fiscal years. 

(d)^ no grant may be made to an Indian tribe unless the applicant 
provides satisfactory assurances that its program will be conducted 
and administered in conformity with title II of Public Law 90-284. 
The Secretary may waive, in connection with such grants, the provi- 
sions of section 109 and section 110. 



1 Sec. 15(c) of the Housing Authorization Act of 1976, Public Law 94-375, approved 
August 8, 1976. 90 Stat. 1067, amended section 107(a)(1) of the Housing and Com- 
nuinity Development Act of 1974 to read as set forth in the text. 

- Sec. 107 of the Housing and Community Development Act of 1977. Public Law 95-128. 
approved October 12. 1977, amended section 107 to read as set forth in the text. 

^ Sec. 107 of the Housing and Community Development Act of 1977. Public Law 95-128. 
approved October 12, 1977, amended section 107(a) by adding subsection (a)(7) and 
(a) (8). 

* Sec. 103(f) of the Housing and Community Development Amendments of 1978, Public 
Law 95-557, 92 Stat. 2080 (1978). adds this last sentence. 

• Sec. 107 of the Housing and Community Development Act of 1977, Public Law 95-128, 
approved October 12. 1977. amended section 107(b) bv deleting 'one-fourth ' and inserting 
in lieu thereof "15 per centum". 

« Sec. 107 of the Housing and Community Development Act of 1977. Public Law 95-128, 
approved October 12. 1977, amended section 107 by adding new subsection (d). 



1071 



§ 108 COMMUNITY DEVELOPMENT BLOCK GRANTS 

GUARANTEE OF LOANS FOR ACQUISITION OF PROPERTY 

Sec. 108.^ (a) The Secretary is authorized, upon such terms and 
conditions as the Secretary may prescribe, to guarantee and make 
commitments to guarantee the notes or other obligations issued by 
units of general local government, or by public agencies designated 
by such units of general local government, for the purposes of financ- 
ing acquisition of real property or the rehabilitation of real property 
owned by the unit of general local government (including such re- 
lated expanses us the Secretary may permit by regulation). Notes or 
other obligations guaranteed pursuant to this section shall be in such 
form and denominations have such maturities, and be subject to 
such conditions as may be prescnbed by regulations issued by the 
Secretary. 

(b) No guarantee or commitment to guarantee shall be made with 
respect to any note or other obligation if the issuer's total outstand- 
ing notes or obligations guaranteed under this section would thereby 
exceed an amount equal to three times the amount of the grant ap- 
proval for the issuer pursuant to section 106. 

(c) Notwithstanding any other provision of this title, grants allo- 
cated to an issuer pursuant to this title (including program income 
derived therefrom) are authorized for use in the payment of princi- 
pal and interest due (including such servicing, underwriting, or 
other costs as may be specified in regulations of the Secretary) on the 
notes or other obligations guaranteed pursuant to this section. 

(d) To assure the repayment of notes or other obligations and 
charges incurred under this section and as a condition for receiving 
such guarantees, the Secretary shall require the issuer to — 

(1) enter into a contract, in a form acceptable to the Secretary, 
for repayment of notes or other obligations guaranteed here- 
under ; 

(2) pledge anv grant approved or for which the issuer may be- 
come eligible under this title ; and 

(3) furnish, at the discretion of the Secretary, such other se- 
curity as may be deemed appropriate by the Secretary in mak- 
ing such guarantees, including increments in local tax receipts 
generated by the activities assisted under this title or disposi- 
tions proceeds from the sale of land or rehabilitated property. 

(e) The Secretary is authorized, notwithstanding any other pro- 
vision of this title, to apply grants pledged pursuant to subsection 
(d) (2) to any repayments due the United States as a result of such 
guarantees. 

(f ) The full faith and credit of the United States is pledged to the 
payment of all guarantees made under this section. Any such guaran- 
tee made by the Secretary shall be conclusive evidence of the eligibility 
of the obligations for such guarantee with respect to principal and 
interest, and the validity of any such guarantee so made shall be incon-_ 
testable in the hands of a holder of the guaranteed obligations. 



1 See. 108 of the Housing and Community Development Act of 1977, Public Law 95-128, 
approved October 12, 1977, amended section 108 by deleting subsections (a) and (b) and 
inserting in lieu thereof new subsections (a) and (b), and also redesignating subsections 
(c), (d), (e), (f), and (g) as subsections (f), (g), (h), (i), and (j), respectively; and by 
inserting new subsections (c), (d), and (e) as set forth In the text. 



1072 



COMMUNITY DEVELOPMENT BLOCK GRANTS § 109 

(g) The Secretary may issue obligations to the Secretary of the 
Treasury in an amount outstanding at any one time sufficient to enable 
the Secretary to carry out his obligations under guarantees authorized 
by this section. The obligations issued under this subsection shall have 
such maturities and bear such rate or rates of interest as shall be deter- 
mined by the Secretary of the Treasury. The Secretary of the Treas- 
ury is authorized and directed to purchase any obligations of the 
Secretary issued under this section, and for such purposes is authorized 
to use as a public debt transaction the proceeds from the sale of any 
securities issued under the Second Liberty Bond Act, as now or here- 
after in force, and the purposes for which such securities may be issued 
under such Act are extended to include the purchases of the Secre- 
tary's obligations hereunder. 

(h) Obligations guaranteed under this section shall ^ be subject to 
Federal taxation as provided in subsection (g). The Secretary is 
authorized to make, and to contract to make, grants, in such amounts 
as may be approved in appropriations Acts,- to or on behalf of the 
issuing unit of general local government or public agency to cover not 
to exceed 30 per centum of the net interest cost (including such serv- 
icing, underwriting, or other costs as may be specified in regulations 
of the Secretary) to the borrowing unit or agency of such obligations. 

(i) Section 3689 of the Revised Statutes, as amended (31 U.S.C. 
711), is amended by adding at the end thereof a new paragraph as 
follows : 

"(22) For payments required from time to time under contracts 
entered into pursuant to section 108 of the Housing and Community 
Development Act of 1974 for payment of interest costs on obligations 
guaranteed by the Secretary of Housing and Urban Development 
under that section." 

(j) With respect to any obligation issued by a unit of general local 
government or designated agency which is guaranteed pursuant to^ 
this section, the interest paid on such obligation shall be included in 
gross income for the purpose of chapter 1 of the Internal Revenue 
Code of 1954. 

(k)* Notwithstanding any other provision of this section, the total 
amount of outstanding obligations guaranteed on a cumulative basis 
by the Secretary pursuant to subsection (a) shall not at any time 
exceed $3,500,000,000 or such higher amount as may be authorized 
to be appropriated for sections 106 and 107 for any fiscal year. 

NONDISCRIMINATION 

Sec. 109. (a) No person in the United States shall on the ground 



* Sec. 108 of the Housing and Community Development Act of 1977. Public Law 95-128. 
approved October 12, 1977, amended section 108 by deleting in redesignated subsection 
(h) the following: "may, at the option of the issuing unit of general local government 
or designated agency," and inserted In lieu thereof "shall". 

- Sec. 108 of the Housinff and Community Development Act of 1977, Public Law 95-128, 
approved October 12, 1977, amended section 108 by deleting the second sentence of re- 
designated subsection (h) and Inserting a new second sentence as set forth in the text. 

^ Sf c. 108(6) of the Housing and Community Development Act of 1977, Public Law 
95-128, approved October 12, 1977, amended subsection (j), as redesignated, to read as 
set forth in the text. 

* Section 108(7) of the Housinjr and Community Development Act of 1977, Public Law 
95-128, approved October 12, 1977, amended sec. 108 by adding a new subsection (k) as 
set forth in the text. 



1073 



{j 111 COMMUNITY DEVELOPMENT BLOCK GRANTS 

of race, color, national origin, or sex be excluded from participation in, 
be denied the benefits of, or be subjected to discrimination under any 
prof^ram or activity funded in whole or in part with funds made 
available under this title. 

(b) Whenever the Secretary deterniines that a State or unit of 
general local government which is a recipient of assistance under this 
title has failed to comply with subsection (a) or an applicable regula- 
tion, he shall notify the Governor of such State or the chief executive 
fHcer of such unit of local government of the noncompliance and shall 
request the Governor or the chief executive officer to secure compliance, 
li within a reasonable period of time, not to exceed sixty days, the 
Governor or the chief executive officer fails or refuses to secure com- 
pliance, the Secretary is authorized to (1) refer the matter to the At- 
torney General with a recommendation that an appropriate civil 
action be instituted; (2) exercise the powers and functions provided 
by title VI of the Civil Eights Act of 1964 (42 U.S.C. 2000d) ; (3) 
exercise the powers and functions provided for in section 111(a) of 
this Act; or (4) take such other action as may be provided by law. 

(c) When a matter is referred to the Attorney General pursuant to 
subsection (b), or whenever he has reason to believe that a State 
government or unit of general local government is engaged in a pattern 
or practice in violation of the provisions of this section, the Attorney 
General may bring a civil action in any appropriate United States 
district court for such relief as may be appropriate, including in- 
junctive relief. 

LABOR STANDARDS 

Sec. 110. All laborers and mechanics employed by contractors or 
subcontractors in the performance of construction work financed in 
whole or in part with grants received under this title shall be paid 
wages at rates not less than those prevailing on similar construction in 
the locality as determined by the Secretary of Labor in accordance 
with the Davis-Bacon Act, as amended (40 U.S.C. 276a — 276a-5) : 
Provided, That this section shall appljr to the rehabilitation of resi- 
dential property only if such property is designed for residential use 
for eight or more families. The Secretary of Labor shall have, with 
respect to such labor standards, the authority and functions set forth 
in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 
1267) and section 2 of the Act of June 13, 1934, as amended (48 Stat. 
948; 40 U.S.C. 276 (c)). 

REMEDIES FOR NONCOMPLIANCE 

Sec. 111. (a) If the Secretary finds after reasonable notice and op- 
portunity for hearing that a recipient of assistance under this title 
has failed to comply substantially with any provision of this title, the 
Secretary, until he is satisfied that there is no longer any such failure 
to comply, shall — 

(1) terminate payments to the recipient under this title, or 

(2) reduce payments to the recipient under this title by an 
amount equal to the amount of such payments which were not 
expended in accordance with this title, or 

(3) limit the availability of payments under this title to pro- 



1074 



COMMUNITY DEVELOPMENT BLOCK GRANTS § 112 

grams, projects, or activities not affected by such failure to 
comply. 

(b) (1) In lieu of, or in addition to, any action authorized by sub- 
section (a) , the Secretary may, if he has reason to believe that a recipi- 
ent has failed to comply substantially with any provision of this title, 
refer the matter to the Attorney General of the United States with a 
recommendation that an appropriate civil action be instituted. 

(2) Upon such a referral the Attorney General may bring a civil 
action in any United States district court having venue thereof for 
such relief as may be appropriate, including an action to recover the 
amount of the assistance furnished under this title which was not 
expended in accordance with it, or for mandatory or injunctive relief. 

(c) (1) Any recipient which receives notice under subsection (a) 
of the termination, reduction, or limitation of payments under this 
title may, within sixty days after receiving such notice, file with the 
United States Court of Appeals for the circuit in which such State 
is located, or in the United States Court of Appeals for the District 
of Columbia, a petition for review of the Secretary's action. The peti- 
tioner shall forthwith transmit copies of the petition to the Secretary 
and the Attorney General of the United States, who shall represent 
the Secretary in the litigation. 

(2) The Secretary shall file in the court record of the proceeding 
on which he based his action, as provided in section 2112 of title 28, 
United States Code. Xo objection to the action of the Secretary shall 
be considered by the court unless such objection has been urged before 
the Secretary. 

(3) The court shall have jurisdiction to affirm or modify the action 
of the Secretary or to set it aside in whole or in part. The findings of 
fact by the Secretary, if supported by substantial evidence on the 
record considered as a whole, shall be conclusive. The court may order 
additional evidence to be taken by the Secretary, and to be made part 
of the record. The Secretary may modify his findings of fact, or make 
new findings, by reason of the new evidence so taken and filed with 
the court, and he shall also file such modified or new findings, which 
findings with respect to questions of fact shall be conclusive if sup- 
ported by substantial evidence on the record considered as a whole, 
and sliali also file his recommendation, if any, for the modification or 
setting aside of his original action. 

(4) Upon the filing of the record with the court, the jurisdiction of 
the court shall be exclusive and its judgment shall be final, except that 
such judgment shall be subject to review by the Supreme Court of 
the United States upon writ of certiorari or certification as provided 
in section 1254 of title 28, United States Code. 

rSE OF GILVXTS TO SETTLE OUTSTANDING URBAN RENEWAL LOANS 

Sec. 112. (a) The Secretary is authorized, notwithstanding any 
other provision of this title, to apply a portion of the grants, not to 
exceed 20 per centum thereof without the request of the recipient, 
made or to be made under section 103(a) in any fiscal year pursuant 
to an allocation under section 106 to any unit'^of general local gov- 
ernment toward pa3mient of the principal of, and accrued interest on, 
any temporary loan made in connection with urban renewal projects 



1075 



§ 114 COMMUNITY DEVELOPMENT BLOCK GRANTS 

under title I of the Housing Act of 1949 being carried out within the 
jurisdiction of such unit of general local government if — 

(1) the Secretary determines, after consultation with the local 
public agency carrying out the project and the chief executive of 
such unit of general local government, that the project cannot be 
completed without additional capital grants, or 

(2) the local public agency carrying out the project submits to 
the Secretary an appropriate request which is concurred in by 
the governing body of such unit of general local government. 

In determining the amounts to be applied to the payment of tem- 
porary loans, the Secretary shall make an accounting for each project 
taking into consideration the costs incurred or to be incurred, the esti- 
mated proceeds upon any sale or disposition of property, and the capi- 
tal grants approved for the project. 

(b) Upon application by any local public agency carrying out an 
urban renewal project under title I of the Housing Act of 1949, which 
application is approved by the governing body of the unit of general 
local government in which the project is located, the Secretary may 
approve a financial settlement of such project if he finds that a surplus 
of capital grant funds after full repayment of temporary loan 
indebtedness will result and may authorize the unit of general local 
government to use such surplus funds, without deduction or offset, in 
accordance with the provisions of this title. 

REPORTING REQUIREMENTS 

Sec. 113. (a) Not later than 180 days after the close of each fiscal 
year in which assistance under this title is furnished, the Secretary 
shall submit to the Congress a report which shall contain — 

(1) a description of the progress made in accomplishing the 
objectives of this title ; ^ 

(2) a summary of the use of such funds as approved by the 
Secretary during the preceding fiscal year ; and ^ 

(3) ^ with respect to the action grants authorized under section 
119, a listing of each unit of general local government receiving 
funds and the amount of such grants, as well as a brief summary 
of the projects funded for each such unit, the extent of financial 
participation by other puMic or private entities, and the impact 
on employment and economic activity of such projects during the 
previous fiscal year. 

(b) The Secretary is authorized to require recipients of assistance 
under this title to submit to him such reports and other information 
as may be necessary in order for the Secretary to make the report 
required by subsection (a). 

CONSULTATIGN 

Sec. 114. In carrying out the provisions of this title including the 
issuance of regulations, the Secretary shall consult with other Federal 
departments and agencies administering Federal grant-in-aid 
programs. 



1 Sec. 109 of the Housing and Community Development Act of 1977, Public Law 95-128, 
approved October 12, 1977, amended section 113(a) by adding a new paragraph (3) at the 
end thereof. 



1076 



COMMUNITY DEVELOPMENT BLOCK GRANTS § 115 

INTERSTATE AGREEMENTS 

Sec. 115. The consent of the Congress is hereby given to any two or 
more States to enter into agreements or compacts, not in conflict with 
any law of the United States, for cooperative effort and mutual assist- 
ance in support of community development planning and programs 
carried out under this title as they pertain to interstate areas and to 
localities within such States, and to establish such agencies, joint or 
otherwise, as they may deem desirable for making such agreements 
and compacts effective. 

TRANSITION PROVISIONS 

Sec. 116. (a) Except with respect to projects and programs for 
which funds have been previously committed, no new grants or loans 
shall be made after January 1, 1975, under (1) title I of the Demon- 
stration Cities and Metropolitan Development Act of 1966, (2) title I 
of the Housing Act of 1949, (3) section 702 or section 703 of the Hous- 
ing and Urban Development Act of 1965, (4) title II of the Housing 
Amendments of 1955, or (5) title VII of the Housing Act of 1961. 

(b) To the extent that grants under title I of the Housing Act of 
1949 or title I of the Demonstration Cities and Metropolitan Develop- 
ment Act of 1966 are payable from appropriations made for the fiscal 
year 1975, and are made with respect to a project or program being 
carried on in any unit of general local government which is eligible 
to receive a grant for such fiscal year under section 106(a) or (h) of 
this Act, the amount of such grants made under title I of the Housing 
Act of 1949 or title I of tlie Demonstration Cities and Metropolitan 
Development Act of 1966 shall be deducted from the amount of grants 
which such unit of general local government is eligible to receive for 
the fiscal year 1975 under such section 106(a) or (h). The deduction 
required by the preceding sentence shall be disregarded in determin- 
ing the amount of grants made to any unit of general local govern- 
ment that may be applied, pursuant to section 112 of this Act, to 
payment of temporary loans in connection with urban renewal proj- 
ects under title I of the Housing Act of 1949. The amount of any 
appropriations made for the fiscal year 1975 which is used for grants 
so as to be subject to the provisions of this subsection relating to deduc- 
tions shall be deemed to have been appropriated for grants pursuant 
to section 103(a) of this Act for such fiscal year for purposes of calcu- 
lations under sections 106 and 107 of this Act. 

m * * m * m * 

(f) With respect to the program period beginning January 1, 1975, 
the Secretary may, without regard to the requirements of section 104, 
advance to any metropolitan city, urban county or other unit of general 
local government, out of the amount allocated to such entity pursuant 
to section 106 (a) or (h) , an amount not to exceed 10 per centum of the 
amount so allocated which shall be available only for use (1) to 
continue projects or programs referred to in clauses (1) and (2) of 
subsection (a) of this section, or (2) to plan and prepare for the 
implementation of activities to be assisted under this title. 

(g) In the case of funds available for any fiscal year, the Secretary 
shall not consider any application from a metropolitan city or urban 
county for a grant pursuant to section 106 (a) or from a unit of greneral 



1077 



? 119 COMMUNITY DEVELOPMENT BLOCK GRANTS 

local government for a grant pursuant to section 106(h) unless such 
application is submitted on or prior to such date (in that fiscal year) 
as the Secretary shall establish as the final date for submission of 
applications for such grants in that year. 

(h)^ In the event that the total amount available for distribution in 
fiscal year 1977 in metropolitan areas is insufficient to meet all basic 
grant and hold-harmless entitlement needs, as provided by section 
106(a), and funds are not otherwise appropriated to meet such de- 
ficiency, the Secretary shall meet the deficiency, first, from amounts 
available for use under section 107 and. if such amounts are exhausted, 
through a ratable reduction of all entitlements under section 106(a). 

LIQUIDATION OF SUPERSEDEt) PROGRAMS 

Sec. 117. (a) Section 3689 of the Revised Statutes, as amended (31 
U.S.C. 711), is amended by adding after paragraph (22) (as added 
by section 108 (f) of this Act) the following new paragraph : 

"(23) For payments required from time to time under contracts 
entered into pursuant to section 103(b) of the Housing Act of 1949 
with respect to projects or programs for which funds have been 
committed on or before December 31, 1974, and for which funds 
have not previously been appropriated." 

(b) The Secretary is authorized to transfer the assets and liabilities 
of any program which is superseded or inactive by reason of this 
title to the revolving fund for liquidating programs established pur- 
suant to title II of the Independent Offices Appropriation Act of 1965 
(Public Law 81-428 ; 68 Stat. 272, 295) : - 



Sec. 119.^ (a) In order to promote the primary objective of this 
title of the development of viable urban communities, of the total 
amount of authority approved in appropriation Acts under section 
103 (c) , the Secretary is authorized to make urban development action 
grants to severely distressed cities and urban counties to help allevi- 
ate physical and economic deterioration through reclamation of neigh- 
borhoods having excessive housing abandonment or deterioration, and 
through community revitalization in areas with population outmigra- 
tion or a stagnating or declining tax base. Grants made under this 
section shall be for the support of severely distressed cities and urban 
counties that require increased public and private assistance in addi- 
tion to the assistance otherwise made available under this title and 
other forms of Federal assistance. 

(b) Urban development action grants shall be made only to cities 
and urban counties that have, in the determination of the Secretary, 
demonstrated results in providing housing for persons of low- and 
moderate-income and in providing equal opportunity in housing and 

1 Sec. 15(d) of the Houslnjr Authorization Act of 1976. Public Law 94-375. apnrovprt 
August 3, 1976. 90 Stat. 1067, amended section 116 of the Housing and Community 
Development Act of 1974 by adding a new subsection "(h)". 

- There is a technical error in this subsection. The reference should be to title II of 
the Independent Offices Appropriation Act, 1955, Public Law 83-428. The reference to the 
Statutes at Large is correct. 

3 Sec. 110(b) of the Housing and Community Development Act of 1977, Public Law 
95-128, approved October 12. 1977, amended title I of the Housing and Community De- 
velopment Act of 1974 by adding a new section 119. to read as set forth in the text. 

1078 



COMMUNITY DEVELOPxVIENT BLOCK GRANTS § 119 

employment for low- and moderate-income persons and members of 
minority groups. The Secretary shall issue regulations establishing 
criteria in accordance with the preceding sentence and setting forth 
minimum standards for determining the level of physical and eco- 
nomic distress of cities and urban counties for eligibility for such 
grants, which standards shall take into account factors such as the age 
and condition of housing stock, including residential abandonment; 
average income ; population outmigration ; and stagnating or declin- 
ing tax base. 

(c) Applications for assistance under this section shall — 

(1) include documentation of eligibility for grants in accord- 
ance with the standards described in subsection ( b ) ; 

(2) describe a concentrated urban development action pro- 
gram setting forth a comprehensive action plan and strategy to 
alleviate physical and economic distress through systematic 
change, which program shall be consistent with the community 
development program described in section 104 (a) (2) and tlie 
housing assistance plan described in section 104(a)(4) and 
where it exists and is in effect, the overall economic development 
plan as provided for in section 202(b) (10) of the Public Works 
and Economic Development Act of 1965, but only in the event and 
after such time as such plans are required by law or administra- 
tive action to be consistent with community development pro- 
grams. Such programs shall be developed as to take advantage of 
unique opportunities to attract private investment, stimulate 
investment in restoration of deteriorated or abandoned housing 
stock, or solve critical problems resulting from population out- 
migration or a stagnating or declining tax base ; 

(3) include the activities to be undertaken in the urban devel- 
opment action program, together with the estimated costs and 
general locations of such activities ; 

(4) ^ indicate public and private resources which are expected 
strategy described in paragraph (2) ; 

(5) - provide satisfactory assurances that, prior to submission 
of its application, it has (A) prepared and followed a written 
citizen participation plan, which plan provides the opportunity 
for citizens to participate in the development of the application, 
with special attention to measures to encourage the statement of 
views and the submission of proposals by low- and moderate- 
income people and residents of blighted neighborhoods, and to 
scheduling hearings at times and locations which are convenient 
to all citizens, (B) provided citizens with adequate information 
concerning the amount of funds available for proposed activities 
under this section, the range of activities that may be undertaken, 
and other important program requirements, and (C) held public 
hearings to obtain the views of citizens on needs which may be 
dealt with under this section ; and 



1 Amended by Housing and Community Development Amendments of 1978, Sec. 103(g) 
(1), Public Law 95-557, 92 Stat. 2080 (1978). 

2 Amended by Housing and Community Development Amendments of 1978, Sec. 103(g) 
(2). Public Law 95-557. 92 Stat. 2080 (1978). 



45-705 0-79-15 1079 



§ 119 COMMUNITY DEVELOPMENT BLOCK GRANTS 

(6)^ include a statement analyzing the impact of the proposed 
urban development action program on the residents, particularly 
those of low and moderate income, of the residential neighbor- 
hood, and on the neighborhood, in which the program is to be 
located. 

(d) To the extent that the application requirements of section 
104 (a) (4) have been satisfied in connection with a grant made pur- 
suant to section 106, such requirements shall be determined to have 
been met for purposes of this section. 

(e) In establishing criteria for the purpose of making grants under 
this section the Secretary shall establish selection criteria which must 
include (1) as the primary criterion, the comparative degree of phys- 
ical and economic distress among applicants, as measured (in the case 
of a metropolitan city or urban county) by the differences in the ex- 
tent of growth lag, the extent of poverty, and the adjusted age of 
housing in the metropolitan city or urban county; (2) other factors 
determined to be relevant by the Secretary in assessing the compara- 
tive degree of physical and economic deterioration in cities and urban 
counties; and (3) at least the following other criteria: demonstrated 
performance of the city or urban county in housing and community 
development programs; impact of the proposed urban development 
action program on the special problems of low- and moderate-income 
persons and minorities; extent of financial participation by other 
public or by private entities ; extent of assistance to be made available 
by the State ; impact on the physical, fiscal, or economic deterioration 
of the city or urban county; extent to which the program describes 
activities representing a special or unique opportunity to meet local 
priority needs or the objectives of this title; impact of the proposed 
urban development action program on the residents, particularly those 
of low and moderate income, of the residential neighborhood, and on 
the neighborhood, in which the program is to be located; ^ and feas- 
ibility of accomplishing the program in a timely fashion within the 
grant amount available. 

(f) In addition to activities authorized under section 105(a), an 
urban development action program may also include such additional 
community development and neighborhood development and conser- 
vation activities as the Secretary may determine to be consistent with 
the purposes of this section. 

(g) No assistance shall be provided for business loans or industrial 
development under this section unless the Secretary shall first consult 
with and coordinate such assistance with other Federal agencies which 
make available funds for similar activities. 

(h) The Secretary shall, at least on an annual basis, make reviews- 
and audits of recipients of grants pursuant to this section as necessary 
to determine the progress made in carrying out activities substantially 
in accordance with approved plans and timetables. The Secretary 
may adjust, reduce, or withdraw grant funds, or take other action as. 
appropriate in accordance with the findings of such review and audits, 
except that funds already expended on eligible activities under this 
title shall not be recaptured or deducted from future grants made 
to the recipient. 

1 This paragraph was added by Housing and Community Development Amendments of 
1978. Sec. 103(g) (3), Public Law 95-557, 92 Stat 2080 (1978). 

2 This clause was added by See. 103(h). Housing and Community Development Amend- 
ments of 1978. Public Law 95-557, 92 Stat. 2080 (1978). 

1080 



COMMUNITY DEVELOPMENT BLOCK GRANTS § 120 

(i) No assistance may be provided under this section for projects 
intended to facilitate the relocation of industrial or commercial plants 
or facilities from one area to another, unless the Secretary finds that 
such relocation does not significantly and adversely affect the unem- 
ployment or economic base of the area from which such industrial 
or commerical plant or facility is to be relocated. 

(i) The Secretary shall allocate tlie amounts available for grants 
under this section in a manner which achieves a reasonable balance 
among programs that are designed primarily (1) to restore seriously 
deteriorated neighborhoods, (2) to reclaim for industrial purposes 
underutilized real property, and (3) to renew commercial employment 
centers. 

(k) Not less than 25 per centum of the funds made available for 
grants under this section shall be used for cities under fifty thousand 
population which are not central cities of a standard metropolitan 
statistical area. 

TAIR PARTICIPATION FOR SMALL COMMUNTTIES 

Sec. 120.^ No community shall be barred from participating in any 
program authorized under this title solely on the basis of population, 
except as expressly authorized by statute. 

Approved August 22, 1974. 



EXCERPT FROM THE HOUSING AND COMMUNITY DEVELOPMENT ACT 

OF 1977 

[Public Law 59-128, 91 Stat. 55, 42 U.S.C. 5301] 

^ ***** * 

STUDY OX SMALL CITIES 

Sec. 113. The Secretary of Housing and Urban Development shall 
conduct a study and, not later than one year after the date of enact- 
ment of this Act, report to the President and to the Congress recom- 
mendation on the formation of a national policy on the developmental 
needs of small cities. In carrying out such study, the Secretary shall 

(1) take steps to improve the data available about small cities, (2) 
suggest means of reducing the duplication in government piograms 
in jurisdictions which affect small cities, and (3) consider all of the 
relevant differences and similarities between small and large cities, 
particularly in the area of housing, growth, development patterns^ 
infrastructure, education, energy needs, and social development. In 
addition, the Secretary shall include in the report alternative veri- 
fiable formulae to be used in the distribution of discretionary balance 
funds available for allocation to small cities under title I of the 
Housing and Community Development Act of 1974. 



Approved October 12, 1977. 



iTliis section was added by Sec. 103(1), Housing and Community Development Amend- 
ments of 1978, Public Law 95-557. 92 Stat. 2080 (1978). 



1081 



^3ai 



EXCERPT FROM REVENUE ACT OF 1978 

[Public Law 95-600, 92 Stat. 2763] 

Subtitle D— Tax-Exempt Bonds 

PART I— INDUSTRIAL DEVELOPMENT BONDS 

SEC. 331. INCREASE IN LIMIT ON SMALL ISSUES OF INDUSTRIAL DE- 
VELOPMENT BONDS. 

(a) General Rule. — Subparagraph (D) of section 103(b) (6) (re- 
lating to $5,000,000 limit in certain cases) is amended by striking out 
"$5,000,000" in the heading and in the text and inserting in lieu 
thereof "$10,000,000". 

(b) Treatment of Certain Urban Development Action 
Grants. — Paragraph (6) of section 103(b) (relating to exemption for 
certain small issues) is amended by adding at the end thereof the 
following new subparagraph : 

"(I) Aggregate amount or capital expenditures w^here 

THERE IS URBAN DEVELOPMENT ACTION GRANT. In the CaSe of 

any issue substantially all of the proceeds of which are to be 
used to provide facilities with respect to which an urban 
development action grant has been made under section 119 
of the Housing and Community Development Act of 1974, 
capital expenditures of not to exceed $10,000,000 shall not be 
taken _into account for purposes of applying subparagraph 
(D)(ii)." 

(c) Effective Dates. — 

(1) The amendments made by subsection (a) shall apply to — 

(A) obligations issued after December 31, 1978, in taxable 
years ending after such date, and 

(B) capital expenditures made after December 31, 1978, 
with respect to obligations issued before January 1, 1979. 

(2) The amendment made by subsection (b) shall apply to — 

(A) obligations issued after September 30, 1979, in taxable i 
years ending after such date, and 

(B) capital expenditures made after September 30, 1979, 
with respect to obligations issued after such date. 

* * * * * ♦ * 

Approved November 6, 1978. 



1082 



§801 

COMMUNITY REINVESTMENT 

EXCERPTS FROM HOUSING AND COMMUNITY DEVELOPMENT ACT OF 

1977 

[Public Law 95-128, 91 Stat. 1147; 42 U.S,C. 5301] 

TITLE VIII— COMMUNITY REINVESTMENT 

******* 

Sec. 801. This title may be cited as the "Community Reinvestment 
Act of 1977". 

Sec. 802. (a) The Congress finds that— - 

(1) regulated financial institutions are required by law to 
demonstrate that their deposit facilities serve the convenience and 
needs of the communities in which they are chartered to do 
business ; 

(2) the convenience and need? of communities include the need 
for credit services as well as deposit services ; and 

(3) regulated financial institutions have continuing and 
affirmative obligation to help meet the credit needs of the local 
communities in which they are chartered. 

(b) It is the purpose of this title to require each appropriate Fed- 
eral financial supervisory agency to use its authority when examining 
financial institutions, to encourage such institutions to help meet the 
credit needs of the local communities in which they are chartered 
consistent with the safe and sound operation of such institutions. 
Sec. 803. For the purposes of this title — 

(1) the term "appropriate Federal financial supervisory 
agency" mean? — 

(A) the Comptroller of the Currency with respect to 
national banks ; 

(B) the Board of Governors of the Federal Reserve Sys- 
tem with respect to State chartered banks which are members 
of the Federal Reserve System and bank holding companies ; 

(C) the Federal Deposit Insurance Corporation with 
respect to State chartered banks and savings banks which are 
not members of the Federal Reserve System and the deposits 
of which are insured by the Corporation ; and 

(D) the Federal Home Loan Bank Board with respect to 
institutions the deposits of which are insured by the Federal 
Savings and Loan Insurance Corporation and to savings and 
loan holding companies ; 

(2) the term "regulated financial institution" means an insured 
bank as defined in section 3 of the Federal Deposit Insurance Act 
or an insured institution as defined in section 401 of the National 
Housing Act ; and 

(3) the term "application for a deposit facility" means an 
application to the appropriate Federal financial supervisory 
agency otherwise required under Federal law or regulations 
thereunder for — 

1083 



§ 804 COMMUNITY REINVESTMENT 

(A) a charter for a national bank or Federal savings and 
loan association; 

(B) deposit insurance in connection with a newly chartered 
' State bank, savings bank, savings and loan association or 

similar institution; 

(C) the establislunent of a domestic branch or other facili- 
ty with the ability to accept deposits of a regulated financial 
institution ; 

(D) the relocation of the home office or a branch office of 
a regulated financial institution; 

(E) the merger or consolidation with, or the acquisition 
of the assets, or the assumption of the liabilities of a regu- 
lated financial institution requiring approval under section 
18(c) of the Federal Deposit Insurance Act or under regula- 
tions issued under the authority of title IV of the National 
Housing Act ; or 

(F) the acquisition of shares in, or the assets of, a regu- 
lated financial institution requiring approval under section 
3 of the Bank Holding Company Act of 1956 or section 408 
(e) of the National Housing Act. 

Sec. 804. In connection with its examination of a financial institu- 
tion, the appropriate Federal financial supervisory agency shall — 

(1) assess the institution's record of meeting the credit needs 
of its entire community, including low- and moderate-income 
neighborhoods, consistent with the safe and sound operation of 
such institution ; and 

(2) take such record into account in its evaluation of an ap- 
plication for a deposit facility by such institution. 

Sec. 805. Each appropriate Federal financial supervisory agency 
shall include in its annual report to the Congress a section outlining^ 
the actions it has taken to carry out its responsibilities under this title. 

Sec. 806. Regulations to carry out the purposes of this title shall be 
published by each appropriate Federal financial supervisory agency,, 
and shall take effect no later than 390 days after the date of enactment 
of this title. 

* * f^ * * 4i * 

Approved October 12, 1977. 



1084 



NEIGHBORHOOD REINVESTMENT CORPORATION §601 

EXCERPTS FROM HOUSING AND COMMUNITY DEVELOPMENT 

AMENDMENTS OF 1978 

[Public Law 95-557, 92 Stat. 2115, 42 U.S.C. 8101] 

TITLE VI— NEIGHBORHOOD REINVESTMENT CORPORATION 

SHORT TITLE 

Sfx\ 601. This title may be cited as the "Neighborhood Eein vestment 
Corporation Act". 

FINDINGS AND PURPOSE 

Sec. 602. (a) The Congress finds that— 

(1) the neighborhood housing services demonstration of the 
Urban Reinvestment Task Force has proven its worth as a success- 
ful program to revitalize older urban neighborhoods by mobiliz- 
ing public, private, and community resources at the neighborhood 
level; and 

(2) the demand for neighborhood housing services programs in 
cities throughout the United States warrants the creation of a 
public corporation to institutionalize and expand the neighbor- 
hood housing services program and other programs of the present 
Urban Reinvestment Task Force. 

(b) The purpose of this title is to establisli a public corporation 
which will continue the joint efforts of the Federal financial supervi- 
sory agencies and the Department of Housing and Urban Development 
to promote reinvestment in older neighborhoods by local financial insti- 
tutions working cooperatively with coinnninity people and local gov- 
ernment, and which will continue the nonbureaucratic approach of the 
Urban Reinvestment Task Force, relying largely on local initiative for 
the special design of local programs. 

ESTABLISHMENT OF CORPORATION 

Sec. 603. (a) There is established a National Neighborhood Rein- 
vestment Corporation (hereinafter referred to as the "corporation") 
which shall be a body corporate and shall possess the powers, and shall 
be subiect to the direction and limitations specified herein. 

(b) The corporation shall implement and expand the demonstration 
activities carried out by the I'rban Reinvestment Task Force. 

(c) The corporation shall maintain its principal office in the District 
of Columbia or at such other place the corporation may from time to 
time prescribe. 

(d) The corporation, including its franchise, activities, assets, and 
income, sliall be exem])t from all taxation now or hereafter imposed by 
the United States, by any territory, dependency, or possession thereof, 
or by any State, county, nnmicipality, or local taxing authority, except 
that any real propei-ty of the corporation shall be subject to State, 
territorial, county, municipal, or local taxation to the same extent 
according to its value as other real property is taxed. 

BOARD OF directors; ESTABLISHMENT 

Sec. 604. (a) The corporation shall be under the direction of a board 
of directors made up of the following members : 

(1) the Chairman of the Federal Home Loan Bank Board; 

1085 



^: 60r, NEIGHBORHOOD REINVESTMENT CORPORATION 

(2) the Secretary of Housing and Urban Development; 

(3) a member of the Board of Governors of the Federal 
Beserve System, to be desisfnated by the Chairman of the Board 
of Governors of the Federal Reserve System ; 

(4) the Chairman of the Federal Deposit Insurance Corpo- 
ration ; 

(5) the Comptroller of the Currency ; and 

(6) the Administrator of the National Credit Union 
Administration. 

(b) The Board shall elect from among its members a chairman who 
shall serve for a term of two years, except that the Chairman of the 
Federal Home Loan Bank Board shall serve as Chairman of the Board 
of Directors for the first such two-year term. 

(c) Each director of the corporation shall serve ex officio during 
the period he holds the office to which he is appointed by the President. 

(d) The directors of the corporation, as full-time officers of the 
United States, shall serve without additional compensation but shall 
be reimbursed for travel, subsistence, and other necessary expenses 
incurred in the performance of their duties as directors of the 
corporation. 

(e) The directors of the corporation shall adopt such bylaws, 
policies, and administrative provisions as are necessary to the func- 
tioning of the corporation and consistent with the provisions of this 
title. 

(f) The presence of a majority of the board members shall con- 
stitute a quorum. 

(g) The corporation shall be subject to the provisions of section 
552 of title 5, United States Code. 

(h) All meetings of the board of directors will be conducted in 
accordance with the provisions of section 552b of title 5, United States 
Code. 

OFFICERS AND EMPLOYEES 

Sec. 605. (a) The board shall have power to select, employ, and fix 
the compensation and benefits of such officers, employees, attorneys, and 
agents as shall be necessary for the performance of its duties under 
this title, without regard to the provisions of title 5, United States 
Code, governing appointments in the competitive service, classification, 
and General Schedule pay rates, except that no officer, employee, attor- 
ney, or agent of the corporation may be paid compensation at a rate 
in excess of the highest rate provided for GS-18 of the General 
Schedule under section 5332 of title 5, United States Code. 

(b) The directors of the corporation shall appoint an executive 
director who shall serve as chief executive officer of the corporation. 

(c) The executive director of the corporation, subject to approval 
by the board, may appoint and remove such employees of the corpora- 
tion as he determines necessary to carry out the purposes of the 
corporation. 

(d) No political test or political qualification shall be used in select- 
ing, appointing, promoting, or taking any other personnel action with 
respect to any officer, agent, or employee of the corporation or of any 
recipient, or in selecting or monitoring any grantee, contractor, or per- 
son or entity receiving financial assistance under this title. 



1086 



NEIGHBORHOOD REINVESTMENT CORPORATION §606 

(e) Officers and employees of the corporation shall not be considered 
officers or employees of the United States, and the corporation shall 
not be considered a department, agency, or instrumentality of the Fed- 
eral Government. The corporation shall be subject to administrative 
and cost standards issued by the Office of Management and Budget 
similar to standards applicable to non-profit grantees and educational 
institutions. 

P0^VERS AND DUTIES 

Sec. 606. (a)(1) The corporation shall continue the work of the 
Urban Reinvestment Task Force in establishing neighborhood hous- 
ing ser\ices programs in neighborhoods throughout the United St ates, 
supervising their progress, and providing them with grants and tech- 
nical assistance. For the purpose of this paragraph, a neighborhood 
housing services program may involve a partnei-sliip of neighborhood 
residents and representatives of local goA'ernmental and financial insti- 
tutions, organized as a State-chartered non-profit corporation, work- 
ing to bring about reinvestment in one or more neighborhoods through 
a program of systematic housing inspections, increased public invest- 
ment, increased private lending, increased resident investment, and a 
revolving loan fund to make loans available at flexible rates and terms 
to homeowners not meeting private lending criteria. 

(2) The corporation shall continue the work of the Urban Reinvest- 
ment Task Force in identifying, monitoring, evaluating, and providing 
grants and technical assistance to selected neighborhood preservation 
projects Avhich show promise as mechanisms for reversing neighbor- 
hood decline and improving the quality of neighborhood life. 

(3) The corporation sliall experimentally replicate neighborhood 
preservation projects which have demonstrated success, and after creat- 
ing reliable developmental processes, bring the new programs to neigh- 
borhoods tliroughout the Ignited States which in the judgment of the 
corporation can benefit therefrom, by providing assistance in orga- 
nizing programs, providing grants in partial support of program costs, 
and ])roviding technical assistance to ongoing programs. 

(4) The corporation shall continue the work of the Urban Reinvest- 
ment Task Force in supporting Xeighborhood Housing Services of 
America, a nonprofit corporation established to provide services to 
local neighborhood housing services programs, with support which 
may include technical assistance and grants to expand its national loan 
purchase pool and may contract with it for services which it can per- 
form more efficiently or effectively than the corporation. 

(5) The corporation shall, in making and providing the foregoing 
grants and technical and other assistance, determine the reporting and 
management restrictions or requirements with wliich the recipients of 
such grants or other assistance must comply. In making such deter- 
minations, the corporation shall assure that recipients of grants and 
other assistance make available to the corporation such information as 
may be necessary to determine compliance with applicable Federal 
laws. 

(b) To carry out the foregoing purposes and engage in the forego- 
ing activities, the corporation is authorized — 

(1) to adopt, alter, and use a corporate seal; 

(2) to have succession until dissolved by Act of Congress; 



1087 



§ 607 NEIGHBORHOOD REINVESTMENT CORPORATION 

(3) to make and perform contracts, agreements, and 
commitments ; 

(4) to sue and be sued, complain and defend, in any State, Fed- 
eral, or other court ; 

(5) to determine its necessary expenditures and the manner in 
which the same shall be incurred, allowed, and paid, and appoint, 
employ, and fix and provide for the compensation of consultants, 
without regard to any other law, except as provided in section 
608(d); 

(6) to settle, adjust, and compromise, and with or without com- 
pensation or benefit to the corporation to release or waive in whole 
or in part, in advance or otherwise, any claim, demand, or right 
of, by, or against the corporation ; 

(7) to invest such funds of the corporation in such investment 
as the board of directors may prescribe ; 

(8) to acquire, take, hold, and own, and to deal with and dispose 
of any property ; and 

(9) to exercise all other powers that are necessary and proper to 
carry out the purposes of this title. 

(c) (1) The corporation may contract with the Office of Neighbor- 
hood Reinvestment of the Federal home loan banks for all staff, serv- 
ices, facilities, and equipment now or in the future furnished by the 
Office of Neighborhood Reinvestment to the Urban Reinvestment Task 
Force, including receiving the services of the Director of the Office of 
Neighborhood Reinvestment as the corporation's executive director. 

(2) The corporation shall have the power to award contracts and 
grants to — 

(A) neighborhood housing services corporations and other non- 
profit corporations engaged in neighborhood preservation activi- 
ties; and 

(B) local governmental bodies. 

(3) The Secretary of Housing and Urban Development, the Federal 
Home Loan Bank Board and the Federal home loan banks, the Board 
of Governors of the Federal Reserve System and the Federal Reserve 
banks, the Federal Deposit Insurance Corporation, and the Comptrol- 
ler of the Currency, the National Credit Union Administration or 
any other department, agency, or other instrumentality of the Federal 
Government are authorized to provide services and facilities, with or 
without reimbursement, necessary to achieve the objectives and to 
carry out the purposes of this title. 

(d) (1) The corporation shall have no power to issue any shares of 
stocks, or to declare or pay any dividends. 

(2) No part of the income or assets of the corporation shall inure 
to the benefit of any director, officer, or employee, except as reasonable 
compensation for services or reimbursement for expenses. 

(3) The corporation may not contribute to or otherwise support any 
political party or candidate for elective public office. 

REPORTS AND AUDITS 

Sec. 607. (a) The corporation shall publish an annual report which 
shall be transmitted by the corporation to the President and the 
Congress. 



1088 



NEIGHBORHOOD REINVESTMENT CORPORATION §608 

(b) The accounts of the corporation shall be audited annualh\ Such 
audits shall be conducted in accordance with generally accepted audit- 
ing standards by independent certified public accountants who are 
certified by a regrilatory authority of the jurisdiction in which the audit 
is undertaken. 

(c) In addition to the annual audit, the financial transactions of the 
corporation for any fiscal year during which Federal funds are avail- 
able to finance any portion of its operations may be audited by the 
General Accounting Office in accordance with such rules and regula- 
tions as may be prescribed by the Comptroller General of the United 
States. The financial transactions of the corporation shall be audited 
by the General Accounting Office at least once during each three years 

(d) For any fiscal year during which Federal funds are available 
to finance any portion of the corporation's grants or contracts, the 
General Accounting Office, in accordance with such rules and regula- 
tions as may be prescribed by the Comptroller General of the United 
States, may audit the grantees or contractors of the corporation. 

(e) The corporation shall conduct or require each grantee or con- 
tractor to provide for an annual financial audit. The report of each 
such audit shall be maintained for a period of at least five years at 
the principal office of the corporation. 

AUTHORIZATION 

Sec. 608. (a) There are authorized to be appropriated to the corpo- 
ration to carrv out this title not to exceed $12,500,000 for fiscal vear 
1979. 

(b) Funds appropriated pursuant to this section shall remain avail- 
able until expended. 

(c) Xon-Federal funds received by the corporation, and funds re- 
ceived by any recipient from a source other than the corporation, shall 
be accounted for and reported as receipts and disbursements separate 
and distinct from Federal funds. 

(d) The corporation shall prepare annually a business-type budget 
which shall be submitted to the Office of Management and Budget, 
under such rules and regulations as the President may establish as to 
the date of submission, the form and content, the classifications of 
data, and the manner in which such budget program shall be prepared 
and presented. The budget of the corporation as modified, amended, 
or revised by the President shall be transmitted to the Congress as a 
part of the annual budget required by the Budget and Accounting Act, 
1921. Amendments to the annual budget program may be submitted 
from time to time. 

* * * * « « * 

Approved October 81, 1978. 



1089 



NEIGHBORHOOD SELF-HELP DEVELOPMENT § 701 

EXCERPTS FROM HOUSING AND COMMUNITY DEVELOPMENT 
AMENDMENTS OF 1978 

[Public Law 95-557, 42 U.S.C. 8121] 

TITLE VII— NEIGHBORHOOD SELF-HELP DEVELOPMENT 
SHORT TITLE 

Sec. 701. This title may be cited as the "Neighborhood Self-Help 
Development Act of 1978". 

FINDINGS AND PURPOSES 

Sec. 702. (a) The Congress finds and declares that — 

(1) existinii urban noio:hbol•hood^ are a national resource to 
be conserved and I'ovitalized wliei-ever possible, and that public 
policy should promote governmental and private programs and 
activities that further that objective; 

(2) to bo oilocti^■e. npi<rlihorhoo(l conservation and revitaliza- 
tion efforts must involve the fullest possible support and partic- 
ipation of those most directly affected at the neighborhood levels; 
and 

(3) an effective way to obtain such support and participation 
at the neighborhood level is through neighborhood organizations 
accountable to residents of a particular neighborhood with a 
demonstrable capacity for developing, assessing, and carrying 
out projects for neighborhood conservation and revitalization. 

(b) Therefore, the purposes of this title are (1) to provide grants 
and other forms of assistance to qualified neighborhood organizations 
to undertake specific housing, economic or community development, 
and other appropriate neighborhood conservation and revitalization 
projects in low- and moderate-income neighborhoods, which are in 
need of preservation and revitalization, and (2) in the process of pro- 
viding such assistance, to increase the capacity of neighborhood orga- 
nizations to utilize and coordinate resources available from the public 
and private sectors and from the residents and neighborhoods them- 
selves, in conserving and revitalizing such neighborhoods. 

DEFINITIONS 

Sec. 703. As used in this title— 

(1) the term ''neighborhood organization" means a voluntary, 
nonprofit organization which (A) is broadly representative of the 
neighborhood in which the project will be* located (and may in- 
clude representatives of local business, financial and other govern- 
mental and nongovernmental entities), (B) is accountable to 
neighborhood residents with respect to the project being proposed, 
(C) has an objective the preservation and revitalization of such 
neighborhood, and (D) is found by the Secretary to have a proven 
record or demonstrable capacity for developing 'resources for, and 
effectively implementing neighborhood conservation and revitali- 
zation programs and projects; 



1091 



§ TOP. XEIGHBORHOOD SELF-HELP DEVELOPMENT 

(2) the term "neighborhood conservation and revitalization 
projects" includes, but is not limited to, (A) locally initiated pro- 
grams for housing rehabilitation or the creative reuse or improve- 
ment of existing housing; (B) conservation and revitalization of 
neighborhood retail business areas and the recycling of vacant or 
underutilized industrial sites, public facilities, and privately 
owned businesses for the purpose of expanding employment oppor- 
tunities and neighborhood economic development ; and (C) energy 
conservation and weatherization projects; and 

(3) the term "Secretary" means the Secretary of Housing and 
Urban Development. 

AUTHORITY TO PROVIDE ASSISTANCE 

Sec. 704. (a) The Secretary is authorized to make grants and to 
provide other forms of assistance to neighborhood organizations for 
effectively preparing and implementing specific housing, economic and 
community development, and other appropriate neighborhood conser- 
vation and revitalization projects within a particular neighborhood, 
and to assist such organizations in implementing such projects in 
partnership with local government and other public and private 
entities. 

(b) Grants and other forms of assistance may be made available 
under this section only if — 

(1) the assistance will be used for a specific project which is 
related to and supportive of a conservation or revitalization strat- 
egy for the neighborhood in which the project will be located; 

(2) the project will, to the extent feasible, include a self-help 
component which involves a contribution of time or resources by 
neighborhood residents; 

(3) the project will directly benefit the residents of a low- or 
moderate-income neighborhood ; 

(4) the project will, to the extent feasible, involve leveraging of 
resources available from the private sector ; 

(5) the project will, to the extent feasible, involve the coordi- 
nation of resources available from the local. State, or Federal 
Government ; 

(6) the applicant demonstrates that the residents of the neigh- 
borhood where the project will be located, and particularly resi- 
dents who will be directly affected by the project, have been 
actively involved in and supportive of the selection of the project, 
and will continue to be involved in project development, imple- 
mentation, and evaluation through an effective and continuing 
participation mechanism ; and 

(7) the applicant provides evidence that identified funding 
sources support the project and can make funds available con- 
tingent on the progress of the project. 

(c) Grants and other forms of assistance made available under this 
section shall be used primarily for preparing and the implementation 
of specific neighborhood housing, economic, and community develop- 
ment projects. No grant or other assistance or portion thereof shall 
be made available under this section for (1) planning functions which 
are not directly combined with project implementation, (2) a public 
works project such as street repair which is not associated with the 

1092 



XEIGHBORHOOD SELF-HELP DEVELOPMENT § 704 

S2:)ecific project being funded under this section, (3) operation of a 
social service program which is not associated with the specific project 
being funded under this section, (4) an economic development project 
which will not primarily benefit the residents of the neighborhood in 
which it will be located, (5) operating costs of a community group 
which are not associated with the specific project being funded under 
this section, or (6) other purposes which the Secretary may determine 
are not consistent with the purposes of this title. 

(d) Grants and other forms of assistance may be made available 
under this title only if the application contains a certification by the 
unit of general local government within which the neighborhood to be 
assisted is located that such assistance is consistent with, and sup- 
portive of the specific objectives of that unit of government including 
housing and community development, economic development, and 
neighborhood conservation or revitalization activities being carried 
out by such unit. 

(e) The Secretary shall consult with the heads of other Federal 
departments and agencies having responsibilities related to the pur- 
poses of this title, including the Community Services Administration, 
witli respect to (1) general standards, policies, and procedures to be 
followed in the administration of this title, and (2) particular assist- 
ance actions or approvals which the Secretary believes to be of special 
interest or concern to one or more of such departments and agencies. 
The Secretary shall ensure the close coordination of activities assisted 
under this title with other related Federal, State, and local assistance 
programs, including the programs of the Community Services Admin- 
istration, and, with respect to particular assistance actions or 
approvals, ensure a maximum commitment by the neighborhood orga- 
nization of its own financial and other resources toward the assisted 
project. 

APPROPRIATIOXS 

Sec. 705. There are authorized to be appropriated for the purpose 
of carrying out this title not to exceed $15,000,000 for each of the fiscal 
years 1979 and 1980. Any amount appropriated pursuant to this section 
shall remain available until expended. 

* * * * « * 41 

Approved October 31, 1978. 



1093 



LIVABLE CITIES § 801 

EXCERPTS FROM HOUSING AND COMMUNITY DEVELOPMENT 
AMENDMENTS OF 1978 

[Public Law 95-557, 92 Stat. 2122, 42 U.S.C. 8141] 

TITLE VIII— LIVABLE CITIES 

SHORT TITLE 

Sec. 801. This title may be cited as the "Livable Cities Act of 1978". 

FINDINGS 

Sec. 802. The Congress finds and declares — 

(1) that artistic, cultural, and historic resources, including 
urban design, constitute an integral part of a suitable living 
environment for the residents of the Nation's urban areas, and 
should be available to all residents of such areas, regardless of 
income ; 

(2) that the development or preservation of such resources is 
a significant and necessary factor in restoring and maintaining 
the vitality of the urban environment, and can serve as a catalyst 
for improving decaying or deteriorated urban communities and 
expanding economic opportunities, and for creating a sense of 
community identity, spirit, and pride; and 

(3) that the encouragement and support of local initiatives 
to develop or preserve such resources, particularly in connection 
with federally assisted housing or community dovolojmient activi- 
ties or in communities with a high Droportion of low-income 
residents, is an appropriate function of the Federal Government. 

PURPOSE 

Sec. 803. The primary purpose of this title is to assist the efforts of 
States, local governments, neighborhood and other organizations to 
provide a more suitable living environment, expand cultural oppor- 
tunities, and to the extent practicable, stimulate economic oppor- 
tunities, primarily for the low and moderate income residents of 
communities and neighborhoods in need of conservation and revital- 
ization, through the utilization, design or development of artistic, 
cultural, or historic resources. 

DEFINITIONS 

Sec. 804. For the purpose of this title — 

(1) the terms "art" and "arts" include, but are not limited to, 
architecture (including preservation, restoration, or adaptive use 
of existing structures), landscape architecture, urban design, 
interior design, graphic arts, fine arts (including painting and 
sculpture) , performing arts (including music, drama, and dance) , 
literature, crafts, photographer, communications media and film, 
as well as other similar activities which reflect the cultural herit- 
age of the Nation's communities and their citizens ; 

(2) the term "nonprofit organization" means an organization 
in which no part of its net earnings inures to the benefit of any 
private stockholder or stockholders, individual or individuals and, 

1095 

45-705 0-79-16 



§805 LIVABLE CITIES 

if a private entity, which is not disqualified for tax exemption 
under section 501(c)(3) of the Internal Kevenue Code of 1954 
by reason of attempting to influence legislation and does not par- 
ticipate in or intervene in (including the publishing or distri- 
bution of statements) any political campaign on behalf of any 
candidate for public office ; such organizations may include States 
and units of local government (including public agencies or 
special authorities thereof), regional organizations of local gov- 
ernments and nonprofit societies, neighborhood groups, institu- 
tions, organizations, associations or museums ; 

(3) the term "project" means a program or activity intended 
to carry out the purposes of this title, including programs for 
neighborhood and community-based arts programs, urban design, 
user needs design, and the encouragement of the preservation of 
historic or other structures which have neighborhood or commu- 
nity significance ; 

(4) the term "Secretary" means the Secretary of Housing and 
Urban Development ; 

(5) the term "Chairman" means the Chairman of the National 
Endowment for the Arts ; 

(6) the term "Department" means the Department of Housing 
and Urban Development ; and 

(7) the term "'Endowment" means the National Endowment for 
the Arts. 

GRAXTS TO OR CONTRACTS WITH ORGANIZATIONS 

Sec. 805. (a) The Secretary is authorized to make grants to, or enter 
into contracts with, nonprofit organizations for the purpose of enabling 
such organizations to undertake or support in cities, urban commu- 
nities, or neighborhoods, projects which the Secretary, in consultation 
with the Chairman, determines will carry out the purposes of this title 
and which — 

(1) have substantial artistic, cultural, historical, or design 
merit, 

(2) represent community or neighborhood initiatives which 
have a significant potential for conserving or revitalizing com- 
munities or neighborhoods, and for enhancing community or 
neighborhood identity and pride, and 

(3) meet the criteria established jointly by the Secretary and 
the Chairman pursuant to this section. 

(b) The Secretary and the Chairman shall establish jointly criteria 
and procedures for evaluating and selecting projects to be assisted 
under this title. Such criteria shall address, but need not be limited 
to— 

(1) artistic, cultural, historical, or design quality ; 

(2) the degree of broadly based, active involvement of neighbor- 
hood residents, community groups, local officials, and persons with 
expertise in the arts with the proposed project ; 

(3) the degree of or the potential for utilization or stimulation 
of assistance or cooperation from other Federal, State, and local 
public and private sources, including arts organizations ; 

(4) the feasibility of project implementation, including the 
capability of the sponsor organization ; 

1096 



LIVABLE CITIES §807 

(5) the potential contribution to neighborhood revitalization 
and the creation of a sense of community identity and pride ; 

(6) the potential for stimulating neighborhood economic and 
community development, particularly for the benefit of persons of 
low and moderate income ; and 

(7) the potential of utilization of the project by neighborhood 
residents, particularly residents of low and moderate income, 
senior citizens, and handicapped persons. 

(c) Xo assistance shall l>e made under this title except upon applica- 
tion therefor submitted to the Secretary in accordance with regula- 
tions and procedures established jointly by the Secret ar\" and the 
Chairman. 

(d) Prior to the approval of any application for assistance under 
this title, the Secretary shall consult with the Chairman and, in accord- 
ance with regulations and procedures established jointly by the Sec- 
retary and the Chairman, seek the recommendations of State and local 
officials and private citizens who have broad knowledge of, or experi- 
ence or expertise in, community and economic development and revi- 
talization, and of such officials and citizens who have broad knowledge 
of, or expertise in, the arts. 

(e) The Secretary, in cooperation with the Chairman, shall pre- 
scribe regulations which require that specific portions of the cost of 
any projects assisted under this title shall be provided from sources 
other than funds made available under this title. Such matching 
requirements may vary depending on the type of applicant, and the 
Secretary may reduce or waive such requirements solely in order to 
take account of the financial capacity of the applicant. 

(f) Grants and other assistance may be made available under this 
title only if the application contains a certification by the unit of gen- 
eral local government in which the project will be located that the 
project is consistent with and supportive of the objective of that gov- 
ernment for the area in which the project is located. 

(g) Funds made available under this title shall not be used to sup- 
plant other public or private funds. 

(h) Xo more than 10 per centum of the funds appropriated for an}^ 
fiscal year under section 807 shall be available for administrative 
expenses. 

COORDINATION AND DEVELOPMENT OF PROGRAM WITH OTHER FEDERAL 
AND NONFEDERAL PROGRAMS 

Sec. 806. The Secretary shall coordinate the administration of the 
provisions of this title in cooperation with other Federal agencies and 
assure that projects assisted under this title are coordinated with 
efforts undertaken by State and local public and private entities, 
including arts organizations. 

AUTHORIZATION OF APPROPRIATIONS 

Sec. 807. There are authorized to be appropriated for carrying out 
the purposes of this title not to exceed $5,000,000 for fiscal year 1979, 
and not to exceed $10,000,000 for fiscal year 1980. Any amounts appro- 
priated under this section shall remain available until expended. 

****** * 

Approved October 31, 1978. 

1097 



§201 

NATIONAL COMMISSION ON NEICJHBORHOODS 

EXCERPTS FROM THE SUPPLEME>fTAL HOUSING AUTHORIZATION 

ACT OF 1977 

[Public Law 95-24, 91 Stat. 55, 12 U^.C. 17dl] 

4i ***** * 

TITLE II— NATIONAL COMMISSION ON 
NEiGHBOEHOODS 

SHORT TITLE 

Sec. 201. This title may be cited as the "National Neighborhood 
Policy Act". 

FINDINGS AND PURPOSE 

Sec. 202. (a) The Confess finds and declares that existing city 
neighborhoods are a national resource to be conserved and revitalized 
wherever possible, and that public policy should promote that 
-objective. 

(b) The Congress further finds that the tendency of public policy 
incentives to ignore the need to preserve the built environment can no 
longer be defended, either economically or socially, and must be 
replaced with explicit policy incentives encouraging conservation of 
■existing neighborhoods. That objective will i-equire a comprehensive 
review of existing laws, policies, and programs which affect neighbor- 
hoods, to assess their impact on neighborhoods, and to recommend 
modifications where necessary. 

ESTABLISHJklENT OF COMMISSION 

Sec. 203. (a) There is hereby established a commission to be known 
as the National Commission on Neighborhoods (hereinafter referred 
to as the "Commission"). 

(b) The Commission shall be composed of twenty members, to be 
appointed as follows : 

(1) two Members of the Senate appointed by the President of 
the Senate ; 

(2) two Members of the House of Representatives appointed by 
the Speaker of the House of Representatives; and 

(3) sixteen public members appointed by the President of the 
United States from among persons specially qualified by experi- 
ence and training to perform the duties of the Commission, at 
least five of whom shall be elected officers of recognized neighbor- 
hood organizations engaged in development and revitalization 
programs, and at least five of whom shall be elected or appointed 
officials of local governments involved in preservation programs. 



1099 



§204 NATIONAL COMMISSION ON NEIGHBORHOODS 

The remaining members shall be drawn from outstanding indi- 
viduals with demonstrated experience in neighborhood revitaliza- 
tion activities, from such fields as finance, business, philanthropic, 
civil, and educational organizations. 
The individuals appointed by the President of the United States shall 
be selected so as to provide representation to a board cross section of 
racial, ethnic, and geographic groups. The two members appointed 
pursuant to clause (1) may not be members of the same political party, 
nor may the two members appointed pursuant to clause (2) be mem- 
bers of the same political party. Not more than eight of the members 
appointed pursuant to clause (3) may be members of the same political 
party. 

(c) The Chairman shall be appointed by the President, by and with 
the advice and consent of the Senate, from among the public members. 

(d) The executive director shall be appointed by the President, by 
and with the advice and consent of the Senate, from among individuals 
recommended by the Commission. 

DUTIES 

Sec. 204. (a) The Commission shall undertake a comprehensive 
study and investigation of the factors contributing to the decline of 
city neighborhoods and of the factors necessary to neighbor'hood sur- 
vival and revitalization. Such study and investigation shall include, 
but not be limited to — 

(1) an analysis of the impact of existing Federal, State, and 
local policies, programs, and laws on neighborhood survival and 
revitalization ; 

(2) an identification of the administrative, legal, and fiscal 
•obstacles to the well-being of neighborhoods ; 

(3) an analysis of the patterns and trends of public and private 
investment in urban areas and the impact of such patterns and 
trends on the decline or revitalization of neighborhoods ; 

(4) an assessment of the existing mechanisms of neighborhood 
governance and of the influence exercised by neighborhoods on 
local government; 

(5) an analysis of the impact of poverty and racial conflict 
on neighborhoods ; 

(6) an assessment of local and regional development plans and 
their impact on neighborhoods ; and 

(7) an evaluation of existing citizen-initiated neighborhood 
revitalization efforts and a determination of how public policy 
can best support such efforts. 

(b) The Commission shall make recommendations for modifications 
in Federal, State, and local laws, policies, and programs necessary to 
facilitate neighborhood preservation and revitalization. Such recom- 
mendations shall include, but not be limited to — 

(1) new mechanisms to promote reinvestment in existing city 
neighborhoods ; 

(2) more effective means of community participation in local 
governance ; 

(3) policies to encourage the survival of economically and 
socially diverse neighborhoods ; 



1100 



NATIONAL COMMISSION ON NEIGHBORHOODS §206 

(4) policies to prevent such destructive practices as blockbust- 
ing, redlining, resegregation, speculation in reviving neighbor- 
hoods, and to promote homeownership in urban communities : 

(5) policies to encourage better maintenance and management 
of existing rental housing; 

(6) policies to make maintenance and rehabilitation of existing 
structures at least as attractive from a tax vievrpoint as demolition 
and development of new structures ; 

(7) modification in local zoning and tax policies to facilitate 
preservation and revitalization of existing neighborhoods : and 

(8) reorientation of existing housing and community develop- 
ment programs and other tax and subsidy policies that affect 
neighborhoods, to better support neighborhood preservation 
efforts. 

(c) Not later than fifteen months ^ after the date on which funds 
first become available to carry out this title, the Commission shall sub- 
mit to the Congress and the' President a comprehensive report on its 
study and investigation under this subsection which shall include its 
findings, conclusions, and recommendations and such proposals for 
legislation and administrative action as may be necessary to carry out 
its recommendations. 

COMPENSATION OF MEMBERS 

Sec. 205. (a) Members of the Commission who are Members of 
Congress or full-time officers or employees of the United States shall 
serve without additional compensation, but shall be reimbursed for 
travel, subsistence, and other necessary expenses incurred in the per- 
formance of the duties vested in the Commission. 

(b) Members of the Commission, other than those referred to in 
subsection (a), shall receive compensation at the rate of $100 per day 
for each day they are engaged in the actual performance of the duties 
vested in the Commission and shall be entitled to reimbursement for 
travel, subsistence, and other necessary expenses incurred in the per- 
formance of such duties. 

administrative provisions 

Sec. 206. (a) The Commission shall have the power to appoint and 
fix the compensation of such personnel as it deems advisable, without 
regard to the provisions of title 5, United States Code, governing ap- 
pointments in the competitive service, and the provisions of chapter 
51 and subchapter III of chapter 53 of such title, relating to classifica- 
tion and General Schedule pay rates, but at rates not in excess of a 
maximum rate for GS-18 of the General Schedule under section 5332 
of such title. 

(b) The Commission may procure, in accordance with the provisions 
of section 3109 of title 5, United States Code, the temporary or inter- 
mittent services of experts or consultants. Persons so emplo^^ed shall 
receive compensation at a rate to be fixed by the Commission but not 
in excess of $100 per day, including traveltime. While away from his 



^ Sec. 315, Housing and Comn>unlty Development Amendments, Public Law 95-557, 92 
Stat. 2080, approved October 31, 1978, replaced "one year" and substituted in lieu thereof 
' fifteen months." 

1101 



§ 208 NATIONAL COMMISSION ON NEIGHBORHOODS 

or her home or regular place of business in the performance of se^*v- 
ices for the Commission, any such person may be allowed tra\-el ex- 
penses, including per diem in lieu of subsistence, as authorized by 
section 5703(b) of title 5, United States Code, for persons in the Gov- 
ernment service employed intermittently. 

(c) Each department, agency, and instrumentality of the United 
States is authorized and directed to furnish to the Commission, upon 
request made bj^ the Chairman or Vice Chairman, on a reimbursable 
basis or otherwise, such statistical data, reports, and other informa- 
tion as the Commission deems necessary to carry out its functions 
under this title. The Chairman is further authorized to call upon the 
departments, agencies, and other offices of the several States to furnish, 
on a reimbursable basis or otherwise, such statistical data, reports, and 
other information as the Commission deems necessary to carry out 
its functions under this title. 

(d) The Commission may award contracts and grants for the pur- 
poses of evaluating existing neighborhood revitalization programs and 
the impact of existing laws on neighborhoods. Awards under this sub- 
section may be made to — 

(1) representatives of legally chartered neighborhood orga- 
nizations ; 

(2) public interest organizations which have a demonstrated 
capability in the area of concern ; and 

(3) universities and other not-for-profit educational organiza- 
tions. 

(e) The Commission or, on the authorization of the Commission, 
any subcommittee or member thereof, may, for the purpose of carry- 
ing out the provisions of this title, hold hearings, take testimony, and 
administer oaths or affirmations to witnesses appearing before the 
Commission or any subcommittee or member thereof. Hearings by the 
Commission will be held in neighborhoods with testimony received 
from citizen leaders and public officials who are engaged in neighbor- 
hood revitalization programs. 

AUTHORIZATIONS OP APPROPRIATIONS 

Sec. 207. There are authorized to be appropriated not to exceed 

$1,000,000 to carry out this title. 

EXPIRATION OF THE COMMISSION 

Sec. 208. The Commission shall cease to exist thirty days after the 
submission of its report under section 204. 
Approved April 30, 1977. 



1102 



A. 



§101 

URBAN RENEWAL^ 

TITLE I, HOUSING ACT OF 1949, AS AMENDED 

[PubUc Law 171, 81st Congress; 63 Stat. 413, 414; 42 U.S.C. 1450] 

TITLE I— SLUM CLEARANCE AND URBAN RENEWAL 

Part A* Urban Renewai. Projects, DEMOLmoN Programs, ani> 
Code Enforcement Programs 

urban renewal fund 

Sec. 100. The authorizations, funds, and appropriations available 
pursuant to sections 102 and 103 hereof shall constitute a fund, to be 
known as the "Urban Renewal Fund", and shall be available for ad- 
vances, loans, and grants ^ to local public agencies for urban renewal 
projects in accordance with the provisions of this title, and all con- 
tracts, obligations, assets, and liabilities existing under or pursuant 
to said sections prior to the enactment of the Housing Act of 1954 are 
hereby transferred to said Fund. 

LOCAL responsibilities 

Sec. 101. (a) In entering into any contract for advances for sur- 
veys, plans, and other preliminary work for projects under this title 
or* for grants pursuant to section 103(d), the Secretary^ shall give 
consideration to the extent to wliich appropriate local public bodies 
have undertaken positive programs (through the adoption, moderniza- 
tion, administration, and enforcement of housing, zoning, building 
and other local laws, codes and regulations relating to land use and 
adeq^uate standards of health, sanitation, and safety for buildings, in- 
cluding the use and occupancy of dwellings) for (1) preventing the 
spread or recurrence in the community of slums and blighted areas, 
and (2) encouraging housing cost reductions through the use of ap- 
propriate new materials, techniques, and methods in land and residen- 
tial planning, design, and construction, the increase of efficiency in 
residential construction, and the elimination of restrictive practices 
which unnecessarily increase housing costs. 
I — • 

^ Urban Renewal laws for certain territories and other Jurisdictions which are not part 
of the United Statec can be found In Part I and public housing. 

"Sec MKa), Housing and Urban Development Act of 1^68, Public Law 90-448, ap- 
prored Ant:. 1, 1968. 82 Stat. 476, 518. inserted this heading. 

•Sec. 417(1), Housing Act of 1959, PnbUc Law 86-372, approved September 23, 1959r 
73 Stat. 634. 676. substituted "grants" for "oapital grants". 

*Sec. 417(2), Housing Act of 1959, Pnbllc Law 8^372, approved September 23, 1959, 
73 Stat. 654. 677. inserted "or for grants pursuant to section 103(d)". 

8 Sec. 6, Public Law 90-19, approved May 25, 1967, 81 Stat 17, 21, substituted 
"Secretary" for "Administrator" thronghoot title I In order to make It conform to the 
Department of Housing and Urban Development Act which placed all functions of the 
Housing and Home Finance Administrator in the Secretary of Hoasing aB4 Urban 
Development- 



1103 



§101 URBAN RENEWAL 

(b) In the administration of this title, the Secretary shall encourage 
the operations of such local public agencies as are established on a 
State, or regional (within a State), or unified metropolitan basis or 
as are established on such other basis as permits such agencies to con- 
tribute effectively toward the solution of community development 
or redevelopment problems on a State, or regional (within a State), 
or unified metropolitan basis. The ^ Secretary shall particularly en- 
courage the utilization of local public agencies established by the 
States to operate on a statewide basis in behalf of smaller communities 
within the State which are undertaking or propose to undertake urban 
renewal programs whenever that arrangement facilitates the under- 
taking of an urban renewal program by any such community, or pro- 
vides an effective solution to community development or redevelopment 
problems in such communities, and is approved by resolution or ordi- 
nance of the governing bodies of the affected communities. 

(c)^ No contract shall be entered into for any loan or capital grant 
under this title, unless (1) there is presented to the Secretary by the 
locality a workable program for community improvement ^ (which 
shall include an official plan of action, as it exists from time to 
time, for effectively dealing with the problem of urban slums and blight 
within the community and for the establishment and preservation of a 
well-planned community with well-organized residential neighbor- 
hoods of decent homes and suitable living environment for adequate 
family life) for utilizing appropriate private and public resources to 
eliminate, and prevent the development or spread of, slums and urban 
blight, to encourage needed urban rehabilitation, to provide for the 
redevelopment of blighted, deteriorated, or slum areas, or to undertake 
such of the aforesaid activities or other feasible community activities 
as may be suitably employed to achieve the objectives of such a pro- 
gram, and (2) on the basis of his review of such program, the Secre- 
tary determines that such program meets the requirements of this 
subsection and certifies that the Federal assistance may be made avail- 
able in such community : Provided^^ That commencing three years after 
the date of enactment of the Housing Act of 1964 * or, in ^ the case of an 
Indian tribe, band, or nation, commencing January 1, 1970 ; no work- 
able program shall be certified or recertified unless (A) the locality 
has had in effect, for at least six months prior to such certification or 
recertification, a minimum standard housing code, related but not 
limited to health, sanitation, and occupancy requirements, which is 
deemed adequate by the Secretary, and (B) the Secretary is satisfied 
that the locality is carrying out an effective program of enforcement 
to acliieve compliance with such housing code. Notwithstanding « anv 
other provi sion of law, in the case of a contract with an Indian tribe, 

Sep?emLr23!mf Tlltal IIS/eTO' ^'"''°^ ^'* °' '"''' ^"'"^ ^^^ ^^^'^' ^^'^'''''^ 
DprpmhJ^9l ^q'^q^Io^o? P^o^S development Act of 1969, Public Law 91-152, approved 
?rocmm rPn/iii?SonPf.^*V- 379, 390, amended section 101(c) to eliminate the workable" 
?01^p1^/«i^«n^.^.^J'iJ^K ^?^'''.f^^ public housing and section 221(d)(3) projects; sec. 
Law 9-; 24 «nSJ^vn^^5T?;n*fn i^.^^^l^'^^^^^^ Housing Authorization Act of 1977." Public M 
i^aw yo-24 approved April 30, 1977. to read as set forth in the text. 

^ September 2. 1964. 
AuiSt l^h^''lt%^''^A?r^^^^^ ^^ 1^68. Public Law 90-448, approved 

T>,lv^^? sentence added by sec. 302(b), Housing and Urban Develooment Act of 19Rt 
Public Law 89-117, approved August 10. 1965, 79 Stat. ^^J^J^^^^^veiopment Act of l96o, 



1104 



i 



URBAN RENEWAL §102 

band, or nation (or a public housing or other public agency for such 
tribe, band, or nation established under State or tribal law) , the work- 
able program and minimum standards housing code, referred to in the 
preceding sentence, may be presented to the Secretary by such tribe, 
band, or nation, and it shall be subject to the requirements of law with 
; respect to such program and code only to the extent that such tribe, 
! band, or nation has the legal jurisdiction and power to carry out such 
requirements. 

(d) The Secretary is authorized to establish facilities (1) for fur- 
: nishing to communities, at their request, an urban renewal service to 
I assist them in the preparation of a workable program as referred to 

in the preceding subsection and to provide them with technical and 
professional assistance for planning and developing local urban re- 
IV wal programs (iiickidiiiiz ^ roliabilitariou projc^cts requiring no addi- 
tional assistance under this title or self-liquidating redevelopment 
projects), and (2) for the assembly, analysis and reporting of infor- 
mation pertaining to such programs. 

(e) Xo - loan or grant contract may be entered into by the Secretary 
for an urban renewal project unless he determines that (1) the work- 
able program for community improvement presented by the locality 
pursuant to subsection (c) is of sufficient scope and content to furnish 
a basis for evaluation of the need for the urban renewal project; and 
(2) such project is in accord with the program. 

LOANS 

Sfx. 102. (a) To assist local communities in the elimination of slums 
and blighted or deteriorated or deteriorating areas, in preventing the 
spread of slums, blight or deterioration, and in providing maximum 
opportunity for the redevelopment, rehabilitation, and conservation 
of such areas by private enterprise, the Secretary may make tem- 
porary and definitive loans to local public agencies in accordance with 
I the provisions of this title for the undertaking of urban renewal 
I projects. Such loans (outstanding at any one time) shall be in such 
amounts not exceeding the estimated expenditures to be made by the 
looal puljlic agency for ^ such purposes, bear interest at such rate (not 
less than the applicable going Federal rate) , be secured in such manner 
n:id be repaid within such period (not exceeding, in the case of defini- 
tive loans, forty years from the date of the bonds or other obliga- 
tions evidencing such loans), as may be deemed advisable by the Sec- 
retary. Ill ■* any case where, in connection with its undertalring and 
carrying out of an urban renewal project, a local public agency is 
authorized (under the circumstances in which the temporary loan 
I herein provided is requested) to acquire real property in the urban re- 
i newal area, the Secretary, in addition to all other authority under 
I this title and notwithstanding any other provisions of this title, re- 
|- gardless of the stage of development of the urban renewal plan and 
vrhether before or after the approval thereof, may make a temporary 



^ Sec. 302. Housing Act of 1964. Public Law 88-560, approved September 2, 1964, 78 
Stnt. 769. 780, Inserted this parentlietical phrase, 

= See. 302(a)(1). Housing and Urban Development Act of 1965, Public Law 80-117, 
approved August 10. 1965, 79 Stat 451, 474, added subsec. (e). 

Sec. 302(a)(2) of the Housing and Urban Development Act of 1965 provided that the 
requirements imposed by subsec. (e) shall not be applicable to any project which received 
Fodpral rern::nltlr>n prior to the. datp of the enactment of this Act (August 10, 1965). 
^ 3 Sec. 402(a). Housing Act of 1959, Public Law 86-372, approved September 23. 1959. 
73 Stnt. 654. 671, substituted "for such purposes" for "as part of the gross project cost". 

* This sentence added by sec. 403, Housing Act of 1959, Public Law 86-372, approved 
September 23, 1959, 73 Stat. 654, 671. 

1105 



§102 URBAN RENEWAL 

loan or loans to any such local public agency to finance the acquisition j 
of such real property ; Provided^ That no loan for such purpose shall \ 
be made unless (1) the governing Ixxiy of the locality involved shaD \ 
have approved by resolution or ordinance the acquisition of real prop- | 
erty in the urban renewal area, and (2) either (A) the Secretary- • 
shall have determined that such loan is reasonably secured by a first i 
mortgage or other prior lien upon such real property or is otherwise \ 
reasonably secured, or (B) the governing body of the locality shall ) 
have assumed the responsibility to bear any loss that may arise as the j 
result of such acquisition in the event that the property so acquired is J' 
not used for urban renewal purposes because the urban renewal plan i 
for the project is not approved, or is amended to omit any of the ac- i 
quired property, or is abandoned for any reason : Provided further y \ 
That the Secretary may, in his discretion and subject to such con- i 
ditions as he may impose, permit any structure so acquired to be de- i 
molished and removed, and may include in any loan authorized by this- I 
section the cost of such demolition and removal, together ^ with ad- 
ministrative, relocation^ and other related costs and payments, if the I 
approval of the local governing body extends to such demolition and { 
removal : And provided further^ That the loan contract shall provide \ 
that the local public agency shall not dispose of such real property j 
(except in lieu of foreclosure) until the local governing body of the \ 
locality involved shall have either approved the urban renewal plan i 
for the project or consented to the disposal of such real property.^ i 
Notwithstanding any other provision of this title, the Secretary may i 
make a temporary loan, as described in the first two sentences of this i 
subsection, for two or more urban renewal projects being carried 5 
out by the same local public agency. The principal amount of any such i 
loan which is outstanding at any one time shall not exceed the esti- i 
mated expenditures to be made by the local public agency for such ; 
projects. ^ ' 

(b) In connection with any project on land which is open or pre- i^ 
dominantly open, the Secretary may make temporary loans to munici- ! 
palities or other public bodies for the provision of public buildings or j 
facilities necessary to serve or support the new uses of such land in the i 
project area. Such temporary loans shall be in such amounts not exceed- r 
mg the expenditures to be made for such purpose, bear interest at such \ 
rate (not less than the applicable going Federal rate) , be secured in r 
such manner, and be repaid within such period (not exceeding ten i 
years from the date of the obligations evidencing such loans) , as may : 
be deemed advisable by the Secretary. , 

(c) Loans made pursuant to subsection (a) or (b) hereof may be 1 
made subject to the condition that, if at any time or times or for any 1 
period or periods during the life of the loan contract the local public 1 
agency can obtain loan funds from sources other than the Federal i 
Government,^ it may do so with the consent of the Secretary at such 3 
I ' 

,.^^^^-«^^^^^^' Housing Act of 1961, Public Law 87-70, approved June 30, 1961. 75 Stat. ii 

149, 172, inserted the language permitting the inclusion of "administrative, relocation, an'3' 'i 
other related costs and payments." 

««^r?^^- 5^^^^^' Housing Act of 1964, Public Law 88-560, approved September 2, 1964 n 
78 Stat. 769. 785. added the remainder of this paragraph. 

8 Sec. '507(a), Housing and Urban Development Act of 1968, Public Law 90-448. ap- \ 

proved Aug. 1. 1968. 82 Stat. 476. 522, struck out "at Interest rates lower than provided | 

In ttie loan contracr . '^ 



1106 



URBAN RENEWAL 5 102 

times and for such periods without waiving or surrendering any rights 
to loan funds under the contract for the remainder of the life of such 
<;ontract, and in any such case, the Secretary is authorized to consent to 
3. pledge by the local public agency of the loan contract, and any or 
all of its rights thereunder, as security for the repayment of the ^ 
principal of and the interest on the loan funds so obtained from other 
sources : Provided^- That, at any time during the undertaking of the 
project, the Secretary may make a supplemental grant to the local 
public agency in the amount of the difference between the interest cost 
trom a source other than the Federal Government and the interest cost 
at the contract rate, or a supplemental grant in an amount which he 
determines is necessary to enable a local public agency to obtain funds 
from a source other than the Federal Government and no part of the 
amount of any such grant shall be required to be contributed as a part 
of the local grant-in-aid. 

In ^ connection with any such pledge of a loan contract, including 
loan payments thereunder, as security for the repayment of obligations 
of the local public agency held by other than the Federal Government, 
the Secretary is authorized to agree to pay, through operations of a 
paying agent or agents, and to pay or cause to be paid when due, from 
funds obtained pursuant to subsection (e) of this section, to the hold- 
ers of such obligations (or to their agents or designees) the principal 
of and the interest on such obligations, subject to such conditions as the 
Secretary may determine but without regard to any other condition or 
requirement. Notwithstanding any other provision of law, any con- 
tract or other instrument executed by the Secretary which, by its terms, 
includes an obligation of the Secretary to make payment pursuant to 
this subsection shall be construed by all officers of the United States 
separate and apart from the loan contract and shall be incontestable 
in the hands of a bearer and the full faith and credit of the United 
States is pledged to the payment of all amounts agreed to be paid by 
the Secretary pursuant to this subsection. 

(d) The Secretary may make advances of funds to local public agen- 
cies for surveys '^ of urban areas to determine whether the undertaking 
of urban renewal projects therein may be feasible and for surveys 
and plans for urban renewal projects which may be assisted under 
this title, including, but not limited to, (i) plans for carrying out 
a program of voluntary repair and rehabilitation of buildings and 
improvements, (ii) plans for the enforcement of State and local laws, 
codes, and regulations relating to the use of land and the use and occu- 
\ 

^^^^^- 402(b), Housing Act of 1959, Public Law 86-372, approved September 23 IQ'SQ 
73 Stat. 654. 671. inserted "the principal of and the interest on" ^epiemoer Jd, iyo9. 

TV, ^^u ^^o^J ^^"dl^^f „^^^ Urban Development Act of 1969. Public Law 91-152 approved 
S*Tm'"^^^>,^^U^^?^' ^\ ^^^*- ^7^' 2^^,' amended this proviso which gives the Secretary of 
HUD authority to make supplemental grants from private sources (previously limited to 
on«f^'?7H'''^yH'^^^^^ ^Y interest cost on a loan from such sources exceeds the Interest 
SmnnnVihi^if^if'"^] ^0°^'".^^* ^ate). to authorize the Secretary to make such grants In an 
amount which he determines is necessary to enable a local public agency to obtain funds 
nZi^n^J^it A°°/^^/-i2?«^ proviso was originally added by sec. 507(b). Housing and Urban 
Development Act of 1968, Public Law 90-448, approved Aucust 1 1968 82 <^tat 47R n22 

14q^'fifi'2^J,^i't?"'^'*°^^f' ^^ ^^?^' P'^V"^ La^^7-%. ap^rled June 30. mi. ^I'stat. 
149. 166, added the remaining provisions In sec 102(c) . « , . c^ 

7 *195fl ^7^0 Stnt°?nQi°^i^nn fn ^^^.^h ^1'''",^ ^^^ ^^^O. 84th Congress, approved August 
^ jyno, 70 btat. 1091. 1100, inserted the language authorizing advances for snrvpvs nf 

Si?; be"l?slb?e.^''""'°^ '^''^'^^'' '^' undertaking of urban ren^ew\l projects In tK?eJj 



1107 



§102 URBAN RENEWAL 

pancy of buildings and improvements, and to the compulsory repair, 

rehabilitation, demolition, or removal of buildings and improve- i 

ments, and (iii) appraisals, title searches, and other preliminary work ■ 

necessary to prepare for the acquisition of land in connection with the i 

undertaking of such projects. The contract for any such advance of ( 

funds shall be made upon the condition that such advance of funds [ 

shall be repaid, with interest at not less than the applicable going, j 

Federal rate, out of any moneys which become available to the local j 

public agency for the undertaking of the project involved. No con- t 

tract for any such advances of funds for surveys and plans for urban i 

renewal projects which may be assisted under this title shall be made I 

unless the governing body of the locality involved has by resolution or i 

ordinance approved the undertaking of such surveys and plans and j 

the submission by the local public agency of an application for such i 

advance of funds. Notwithstanding ^ section 110(h) or the use in any j 

other provision of this title of the term "local public agency" or "local i 

public agencies" the Secretary may make advances of funds under t 

this subsection for surveys and plans for an urban renewal project : 

(including General Neighborhood Renewal Plans as hereinafter de- « 

fined) to a single local public body which has the authority to under-- .: 

take and carry out a substantial portion, as determined by the Secre- « 

tary, of the surveys and plans or the project respecting which such I 

surveys and plans are to be made : Provided, That the application for ;« 

such advances shows, to the satisfaction of the Secretary, that the 4 

filing thereof has been approved by the public body or bodies author- 1 

ized to undertake the other portions of the surveys and plans or of ( 

the project which the applicant is not authorized to undertake. j 

In 2 order to facilitate proper preliminary planning for the attain- \ 

ment of the urban renewal objectives of this title, the Secretary may 5 

also make advances of funds (in addition to those authorized above) 1 

to local public agencies for the preparation of General Neighborhood > 

Renewal Plans (as herein defined) . A General Neighborhood Renewal 1 

Plan may be prepared for an area consisting of an urban renewal j 

area or areas, together with any adjoining areas having specially ^ 

related problems, and which is of such size that the urban renewal j 

activities in the urban renewal area or areas may have to be initiated ) 

in stages, consistent with the capacity and resources of the respective «j 

local public agency or agencies, over an estimated period of not more i 

than eight years. No contract for advances for the preparation of a i 

General Neighborhood Renewal Plan may be made unless the Secre- i 
tary has determined that: 

(1) in the interest of sound community planning, it is desirable >j 

that the urban renewal activities proposed for the area be planned J 

in their entirety ; j 

1 This sentence added by sec. 301, Housing Act of 1956, Public Law 1020, 84th Congress, I 
apDroved August 7. 19o6. 70 Stat. 1091, 1097. J 

2 Sec. 303, Housing and Urban Development Act of 1965, Public Law 89-117, approved' i 
August 10, 1965, 79 Stat. 451, 475, amended the first sentence of this paragraph to (1) I 
eliminate the requirement that the whole area covered by the general neighborhood renewal t 
plan be an urban renewal area, and (2) to permit urban renewal projects undertaken in I 
general neighborhood renewal plan areas to be initiated within a maximum of eight years l 
rather than ten years. 

Remaining provisions In this subsection added bv sec. 303(a). Housing Act of 1956. Public i 

Law 1020. .S4th Congress, approved August 7, 1956. 70 Stat. 1091, 1099. However, a tech- t 

nical amendment was made by sec. 303 of the Housing and Urban Development Act of 1965 I 

in the language in paragraph numbered (1) in order to conform that language to the amend- « 
ment described in the first paragraph of this footnote. 



1108 



URBAN RENEWAL §10^ 

(2) the local public agency proposes ^V^^'f "S^^^^ 
a^d the preparation of an urban renewal plan for such project, 

^""fs^ the croverning body of the locality has by resolution or 
ordinance m approved the undertaking of the General Is eioh- 
Tor W Renewal Plan and the submission of an application for 
suih advance and (ii) represented that such plan will be used to 
thffS eSfeasibl^ a ffuide for the provision of pubhc 
mpr™^^ area and that the plan will be considered m 

formulating codes and other regulatory measures affecting prop- 
erty in the area and in undertaking other local governmental c- 
tivities pertaining to the development, redevelopment, rehabili- 
tation, and conservation of the area. , , ^ , ^. . ..^ 
rhe contract for any such advance of funds for a General Neighbor- 
hood Renewal Plan shall be made upon the condition that such ad- 
ance shall be repaid, with interest at not less than the applicable 
'o^n' Federal ra?e, out of any moneys which become available to the 
ocal public agency for the undertaking of the first urban renewal 
)roiect in such arel: Provided, That in the event of the undertakmg 
)f any other project or projects in such area an appropriate allocation 
)f the amount of the advance, with interest, may be effected to the end 
hat each such project may bear its proper allocable part, as determined 
)Y the Secretary, of the cost of the General Neighborhood Renewal 
4an As used herein, a General Neighborhood Renewal Plan means 
I preliminary plan (conforming in the determination of the govern- 
ng body of the locality, to the general plan of the locality as a whole 
md to the workable program of the community meeting the require- 
nents of section 101) which outlines the urban renewal activities 
proposed for the area involved, provides a framework for the prepara- 
ion of urban renewal plans and indicates generally, to the extent 
leasible in preliminary planning, the land uses, population density, 
)uilding coverage, prospective requirements for rehabilitation and 
mprovement of property, and any portions of the area contemplated 
;or clearance and redevelopment. 

(e)^ The total amount of loan contracts outstanding at any one 
ime under this title shall not exceed the aggregate of the estimated 
expenditures to be made by local public agencies as part of the gross 
project cost of the projects assisted by such contracts. To obtain funds 
:or advance and loan disbursements under this title, the Secretary may 
ssue and have outstanding at any one time notes and obligations for 

^ Immediately prior to amendment by sec. 404, Housing Act of 1959, Public Law 86-372, 
ipproved September 23, 1959, 73 Stat. 654, 671, this subsection reads as follows : 

"(e) To obtain funds for loans under this title, the Administrator, on and after July 1, 
-949, may, with the approval of the President, issue and have outstanding at any one time 
lotes and obligations for purchase by the Secretary of the Treasury in an amount not 
exceed $25,000,000, which limit on such outstanding amount shall be increased bv 
;225,000,000 on July 1, 1950, and by further amounts of ?250,000,000 on Julv 1 in each 
>f the years 1951, and 1952, and 1953. respectively: Provided, That (subject to the total 
luthorlzation of not to exceed $1,000,000,000) such limit, and any such authorized increase 
herein, may be increased, at any time or times, by additional amounts aggregating not 
acre than $250,000,000 upon a determination by the President, after receiving advice from 
lie Council of Economic Advisers as to the general effect of such increase uoon the condi- 
ions in the building industry and upon the national economy, that such action is in the 
)ublic interest." 



1109 



. .^, UBBAN RENEWAIi 

1. «« \.^ fViP ^prretarv of the Treasury in an amount which shall 
^T^.^W^au4S the President exceed $1,000,000,000. For 
?h1'p^Sse o^^^^^^^^^ ^P^^^. obligations as of a ^ven <iate 

WhS^^^^ contained in the preceding sentence the 

sSarv shall estimate the maximum amount to be required to be 
WowS from the Treasury and outstanding at any one time with 
respect to loan commitments in effect on such date. 

(f) Notes or other obligations issued by the Secretair under this 
title shall be in such forms and denominations, have such maturities, 
and be subject to such terms and conditions as may be prescribed 
bv the Secretary, with the approval of the Secretary of the Ireas- 
ury Such notes or other obligations shall bear interest at a rate 
determined by the Secretary of the Treasury, taking mtq consideration 
the current average rate oii outstanding marketable obligations of the 
United States as of the last day of the month preceding the issuance of 
such notes or other obligations. The Secretary of the Treasury is 
authorized and directed to purchase any notes and other obligations 
of the Secretary issued under this title and for such purpose is 
authorized to use as a public debt transaction the proceeds from the ] 
sale of any securities issued under the Second Liberty Bond Act, as , 
amended, and the purposes for which securities may be issued under I 
such Act, as amended, are extended to include any purchases of such I 
notes and other obligations. The Secretary of the Treasury may at any 5 
time sell any of the notes or other obligations acquired by him under \ 
this section. All redemptions, purchases, and sales by the Secretary | 
of the Treasury of such notes or other obligations shall be treated as i 
public debt transactions of the United States. I 

(g) Obligations, including interest thereon, issued by local public 
agencies for projects assisted pursuant to this title, and income derived 
by such agencies from such projects, shall be exempt from all taxation 
now or hereafter imposed by the United States. 

capttaij grants 

Sec. 103. (a) (1) The Secretary may make capital grants to local ! 
public agencies in accordance with the provisions of this title for j 
urban renewal projects : Provided, That the Secretary shall not make I 
any contract for capital grant with respect to a project which consists j 
of open land (other * than land within the purview of section 110 j 
(c) (1) (v) ), except * that he may contract for a grant in an amount ; 
not to exceed two-thirds of the difference between the proceeds from 1 
any land disposed of pursuant to section 107 and the fair value of the \ 
land without regard to such section. I j 

• - ;l 

1 Language in this parenthesis Inserted by sec. 741(a), Housing and Urban Development ( 

Act of 1970, Public Law 91-609, approved December 31, 1970, 84 Stat. 1770. 1805. 

» Sec 506, Housing and Urban Development Act of 1968, Public Law 90-448, approved i 

Aug. 1, 1968, 82 Stat. 476, 522, added the balance of this sentence. ,| 

li 
ii 



1110 



I 



URBAN RENEWAL §103 

(2) The ^ aggregate of such capital grants with respect to all of 
the projects of a local public agency (or of two or more local public 
agencies in the same municipality) on which contracts for capital 
grants have been made under this title shall not exceed the total of — 

(A) two-thirds of the aggregate net project costs of all such projects 
to which neither subparagraph (B) nor subparagraph (C) applies, 
and 

(B) 2 three-fourths of the aggregate net project costs of any such 
projects which are located in (ij a municipality having a population 
of fifty thousand or less according to the most recent decennial cen- 
sus, or (ii) a municipality situated in a labor market area which, at 
the time the contract or contracts involved are entered into or at such 
earlier time as the Secretary may specify in order to avoid hardship, 
or ^ at any time after sucli contract or contracts are entered into and 
prior to the time the final grant payment has been made pursuant 
thereto, is designated as a redevelopment area under the second sen- 
tence of section 5(a) of the Area Kedevelopment Act^ or any other 
legislation enacted after the date of the enactment of the Housing 
and Urban Development Act of 1965 containing standards for desig- 
nation as a redevelopment area generally comparable to those set 
forth in the second sentence of section 5 (a) of the Area Redevelopment 
Act, and 

(C) three- fourths of the aggregate net project costs of any of such 
projects (not falling within subparagraph (B) ) which the Secretary, 
upon request, may approve on a three-fourths capital grant basis. 

(3) A capital grant with respect to any individual project shall 
not exceed the difference between the net project cost and the local 
grants-in-aid actually made with respect to the project. 

immediately prior to amendment by sec. 301(a). Housing Act of 1961, Public Law 
87-70, approved June 30, 1961, 75 Stat. 149, 165, the balance of this subsection read as 
follows : 

"The aggregate of such capital grants with respect to all the projects of a local public 
agency on which contracts for capital grants have been made under this title exclusive of 
projects referred to in the proviso hereto, shall not exceed two-thirds of the aggregate of 
the net project costs of sucn nonexcluded projects : Provided, That the aggregate of such 
capital grants may exceed two-thirds but not three-fourths of the aggregate net project 
costs of those projects which the Administrator, at the request of a local public agency 
may approve on such a three-fourths capital grant basis. A capital grant with respect to 
any individual project shall not exceed the difference between the net project cost and the 
local grants-in-aid actually made with respect to the project " 

2 Sec. 313. Housing and Urban Development Act of 1965, Public Law 89-117 approve 

nn"n^!^o^H-J^*,^^^-^.^V-^^ ^^^^^J^H ^^K: amended thls subpar. (B) to remove the 150^000 
population limitation for three-fourths grants for urban renewal projects located In areas 
designated as redevelopment areas under sec. 401(a) of the Public Works and Economic 
Deveopment Act of 196o (which superseded the Area Redevelopment Act) with respect 
r^JlKV^L^^''^^''}^ placed under contract for capital grants after the date of the enact- 
™®,°o ^^ VX^ Housing and Urban Development Act of 1965 (August 10 1965) 
T „ o^ ^2f Demonstration Cites and Metropolitan Development Act of 1966, Public 
Law 89-754, approved November 3, 1966, 80 Stat. 1255, 1281, inserted "or at any time 
nox^m.^yj! contract or contracts are entered into and prior to the time the final grant 
payment has been made pursuant thereto". ei«i"fc 

nL^^^r.J'J^^ A^^^V'^^^l^^^^^x.^i^K'^'^^^^^^^^^^^^ ^y ^^^ Public Works and Economic 
Development Act of 1965. Public Law 89-136. 79 Stat. 552, 42 U.S.C. 3121. 



nil 

"+5-705 0-79-17 



§103 URBAN RENEWAL 

(b) The Secretary may, with the approval of the President,^ con- 
tract to make <rrants under this title aggregating not to exceed $7,600,- 
000,000,2 which amount shall be increased by $1,400,000,000 on July 1, 
1969, a-nd by $1,700,000,000 on July 1, 1970, bv $1,500,000,000 on July 1, 
1971, by $250,000,000 on July 1, 1972, and $664,000,000 on July 1, 1973, 
and by such sums as may be necessary thereafter.^ 

Not less than 35 per centum of the amounts available to the Secre- 
tary for grants under this title during each of the fiscal years commenc- 
ing after June 30, 1969, and ending prior to July 1, 1974, shall be for 
grants under part B. 

In * addition to the authority to make grants provided in the first 
sentence of this subsection, the Secretary may contract to make grants 
under this title, on or after July 1, 1967, in an amount not to exceed 
$600,000,000 : ^ Provided^ That the authority to contract to make grants 
provided by this sentence shall be exercised only with respect to an 
urban renewal project which is identified and scheduled to be carried 
out as one of the projects or activities included within an approved 
comprehensive city demonstration program assisted under the provi- 
sions of section 105(c) of the Demonstration Cities and Metropolitan 
Development Act of 1966. Such grants shall not be used for major 
long-term capital improvement; shall not exceed two-thirds of the 
cost, as determined or estimated by the Secretary, of the project for 
which the grant is made; and shall be subject to such other terms and 

1 Executive Order 11196. empowered the Secretary to perform this function without 
the approval, ratification, or other action of the President. 

Sec. 605(h), Demonstration Cities and Metropolitan Development Act of 1966, Public 
Law 89-754, approved November 3, 1906, 80 Stat. 1255, 1280, provides that no grants 
for historic preservation may be made under the urban renewal program, beginning 3 years 
after the date of enactment of this Act, except for activities in accord with criteria which 
the Secretary of Housing and Urban Development establishes as comparable to those 
used in connection with the National Register maintained by the Secretary of the 
Interior. 

2 The original authorization July 1, 1949, was .$100 million, with Increases of $100 million 
on July 1, 1950 through 1953. Sec. 106(a). Housing Amendments of 1955, Public Law 345. 
84th Congress, approved Aug. 11, 1955, 69 Stat. 635, 637, Increased the authorization by 
$200 million on July 1, 1955, and July 1. 1956, and also authorized the President to provide 
an additional $100 million of authorization. Sec. 301, Housing Act of 1957, Public Law 
85-104, approved July 12, 1957, 71 Stat. 294, 299, Increased the authorization bv .S350 
million. Sec. 405(1), Housing Act of 1959, Public Law 86-372, approved Sept. 23, 1959, 73 
Stat. 654, 672, increased the authorization by $350 million on Sept. 23, 1959, and by $300 
million July 1, 1960. Sec. 303, Housing Act of 1961, Public Law 87-70, approved June 30. 
1961, 75 Stat. 149, 166, increased the authorization by $2 billion with $25 million ear- 
marked for mass transit demonstration grants. Sec. 304, Housing Act of 1064. Public Law 
88-560, approved Sept. 2, 1964, 78 Stat. 769, 785, increased the authorization by $725 
million. Sec. 304(a). Housing and Urban Development Act of 1965. Public Law 89-117. 
approved Aug. 10. 1965. 79 Stat. 451, 475, Increased the authorization bv $675 million 
Aug. 10, 1965, and by $725 million on July 1, 1966 and $750 million on July 1 1967 and 
1908. The $25 million authorization for mass transportation demonstration grants was 
also removed by sec. 304. Sec. 502(a), Housing and Urban Development Act of 1968, 
Public Law 90-448, approved Aug. 1, 1968, 82 Stat. 476, 521, increased the authorization 
bv SI. 4 million on July 1, 1969. Sec. 201. Housing and Urban Development Act of 1969 
Public Law 91-152, approved December 24, 1969, 83 Stat. 379, 385, Increased the authori- 
zation by $1.7 million on July I, 1970, and earmarked not less than 35 percent of available 
funds during each of the fiscal years 1970 and 1971 for neighborhood development pro- 
grams. Sec. 201, Housing and Urban Development Act of 1970, Public Law 91-609 
approved December 31, 1970, 84 Stat. 1770, 1776, Increased the authorization by %1 d 
million on July 1, 1971, and earmarked not less than 35 percent of availablp fund's com- 
mencing after June 30, 1969 and ending prior to Julv 1, 1974 for neierbborhood develop- 
ment programs. Sec. 4 of Public Law 92-503. approved October 18, 1972, 86 Stat 906 
Increased the authorization by $250 million on July 1, 1972. ' 

See 1964 Amendments to the Alaska Omnibus Act (Public Law 88-451) Infra which 
authorizes $25 million In urban renewal grants to be earmarked for disaster relief in Alaska 
made necessary by the 1964 earthquake and subsequent seismic waves. Sec. 5 of Public Law 
93-117, 87 Stat. 421, approved October 2, 1973, Increased the authorization by $664 000 000 
on July 1. 1973. 

» Sec. 116(c) of Housing and Community Development Act of 1974, Public Law 93-383. 
88 Stat. 633, approved August 22, 1974, added the words "and by such sums as may 
be necessary thereafter." 

„^*^59- ^1^- Demonstration Cities and Metropolitan Development Act of 1966. Public Law 
89-754. approved November 3. 1966. 80 Stat. 1255, 1260, added this sentence. 

"Sec. 502 (b). Housing and Urban Development Act of 1968, Public Law 90-448, 
approved Aug. 1, 1968, 82 Stat. 476. £521. substituted "$600,000,000" for "$250 000 000". 



1112 



URBAN RENEWAL §103 

conditions as he may prescribe. The Secretary is authorized, notwith- 
standing the provisions of section 3648 of the Revised Statutes, as 
amended, to make advance or progress payments on account of any 
grant contracted to be made pursuant to this section. The faith of the 
L'nited States is solemnly pledged to the payment of all grants con- 
tracted for under this title and there are hereby authorized to be ap- 
propriated, out of any money in the Treasury not otherwise appro- 
priated, the amounts necessary to provide for such payments: Pro- 
vided^ That any amounts so appropriated shall also be available for 
repaying to the Secretary of the Treasury, for application to notes of 
the Secretary, the principal amounts of any funds advanced to local 
public agencies under this title which the Secretary determines to be 
uncollectible because of the termination of activities for which such ad- 
vances were made, together with the interest paid or accrued to the 
Secretary of the Treasur}^ (as determined by him) attributable to notes 
given by the Secretary in connection with such advances, but all such 
repayments shall constitute a charge against the authorization to 
make contracts for grants contained in this section: Provided further^ 
That no such determination of the Secretary- shall be construed to 
prejudice the rights of the United States with respect to any such 
advance. 

(c)^ Notwithstanding any other provision of this or any other 
Act, if financial assistance authorized by this title to be made available 
to a locality or local public agency may be made available to any local- 
ity or local public agency witliin the limitations provided in sections 
102(e), 103(b), and 100 (e), and the second panigrapli following the 
paragraph numbered (6) of section 110(c), the amount of such finan- 
cial assistance made available to any locality or local public agency 
upon submission and processing of proper application therefor shall 
not otherwise be restricted except on the basis of (1) urgency of need, 
and (2) feasibility, as determined by the Secretary. 

(d)^ The Secretary may contract to make grants for the prep- 
aration or completion of community renewal programs, which may in- 
clude, without being limited to, (1) the identification of slum areas or 
blighted, deteriorated, or deteriorating areas in the community, (2) 
the measurement of the nature and degree of blight and blighting 
factors within such areas, (3) determination of the financial, reloca- 
tion, and other resources needed and available to renevr sr.cli areas, 

(4) the identification of potential project areas and, where feasibku 
types of uriian renewal action contemplated within such areas, and 

(5) scheduling or programming of urban renewal activities. Such 
programs shall conform, in the determination of the governing body 
of the locality, to the general plan of the locality as a vdiole. The 
Secretary may establish reasonable requirements respecting the scope 
and content of such programs. Xo contract for a grant pursuant to 
this subsection shall be made unless the governing body of the locality 
involved has approved the preparation or completion of tho commu- 
nity renewal program and the submission by the local public agency 
of an application for such a grant. Xotwithstanding section lio(h) 
or the use m any other provision of this title of the term "lo-al public 

23! 1^59,^3 StaT 654^ 6V'>' ^^"^^'"^ ^"^^ ""^ ^^•'^' ^^^^'^ ^^ 86-372, approved .'September 



1113 



§104 URBAN RENEWAL 

agency" or "local public agencies^" the Secretary may make grants 
pursuant to this subsection for the preparation or completion of a 
•community renewal program to a single local public body author- 
ized to perform the planning work necessary to such preparation or 
completion. No grant made pursuant to this subsection shall exceed 
two-thirds of the cost (as such cost is determined or estimated by the 
Secretary) of the preparation or completion of the community re- 
newal program for which such grant is made. 

REQUIREMENTS FOR LOCAL GRANTS-IN-AID 

Sec. 104.^ Every contract for capital grants under this title shall 
require local grants-in-aid in connection with the project involved. 
Such local grants-in-aid, together with the local grants-in-aid to be 
provided in connection with all other projects of the local public agency 
(or tAvo or more local public agencies in the same municipality) on 
which contracts for capital grants have theretofore been made, shall be 
at least equal to the total of one-third of the aggregate net project 
costs of such projects undertaken on a two-thirds capital grant basis 
and one-fourth of the aggregate net project costs of such projects 
undertaken on a three-fourths capital grant basis. 

LOCAL DETERMINATIONS 

Sec. 105. Contracts for loans or capital grants shall be made only 
with a duly authorized local public agency and shall require that — 

(a) The urban renewal plan ^ for the urban renewal area be ap- 
proved by the governing body of the locality in which the project is 
situated, and that such approval include findings by the governing 
body that (i) the financial aid to be provided in the contract is neces- 
sary to enable the project to be undertaken in accordance with the 
urban renewal plan ; (ii) the urban renewal plan will afford maximum 
opportunity, consistent with the sound needs of the locality as a whole, 
for the rehabilitation or redevelopment of the urban renewal area by 
private enterprise; (iii) the urban renewal plan conforms to a general 
plan for the development of the locality as a whole; and^ (iv) the 
urban renewal plan gives due consideration to the provision of ade- 
quate park and recreational areas and facilities, as may be desirable for 
neighborhood improvement with special consideration for the health, 
safety, and welfare of children residing in the general vicinity of the 
site covered by the plan ; 

(b) When real property acquired or held by the local public agency 
in connection with the project is sold or leased, the purchasers or 
t 

1 Immediately prior to amendment by sec. 301(b), Housing Act of 1961, Public Law 
87-70. approved June 30, 1961, 75 Stat. 149, 166, this section read as follows: 

"Src. 104. Every contract for capital grants ntider this title shall require local grants- 
in-aid in connectio'^n with the project involved. Such local grants-in-aid, together with the 
local grants-in-aid to be provided in connection with all other projects of the local public 
agency on which contracts for capital grants have theretofore been made, shaH not be 
required in excess of one-third of the aggregate net project costs of all projects of the loc^l 
public agency on which contracts for capital grants have been made on the' two-thirds basis 
or in excess of one-fourth of the aggregate net project costs of all projects of the local 
public agency on which contracts for capital grants have been made on the three-fourths 

Knofa *' J 

2 Sec. 302(a), Housing Act of 1956. Public Law 1020, 84th Congress, approved August 7, 
1956, 70 Stat. 1091, 1097, deleted "(including any redevelopment plan constituting a part 
thereof)." 

« Sec. 315. Housing Act of 1961. Public Law 87-70, approved June 30, 1961, 75 Stat. 149, 
172, added clause (Iv). 



1114 



URBAN RENEWAL §105 

lessees and their assignees shall be obligated (i) to devote such prop- 
erty to the uses specified in the urban renewal plan for the project 
area; (ii) to begin within a reasonable time any improvements on 
such property required by the urban renewal plan; and (iii) to com- 
ply with such other conditions as the Secretary finds, prior to the 
execution of the contract for loan or capital grant pursuant to this 
title, are necessary to carry out the purposes of this title: Provided^ 
That clause (ii) of this sulDsection shall not apply to mortgagees and 
others who acquire an intej*est in such property as the result of the 
enforcement of any lien or claim thereon: And provided further^ 
That, with respect to any improvements of a type which it is other- 
wise authorized to undertake any Federal agency (as defined in sec- 
tion 3(b) of the Federal Property and Administrative Services Act 
of 1949, as amended, and also including the District of Columbia or 
any agency thereof) is hereby authorized to become obligated in 
accordance with this subsection, except that clause (ii) of this subsec- 
tion shall apply to such Federal agency only to the extent that it is 
authorized (and funds have been made available) to make the improve- 
ments involved ; 

(c) (1) There shall be a feasible method for tlie tem.porary reloca- 
tion of individuals ^ and families displaced from the urban renewal 
area, and there are or are being provided, in the urban rer.ewal area 
or in other areas not generally less desirable in regard to public utili- 
ties and public and commercial facilities and at rents or prices within 
the financial means of the individuals and families displaced from 
the urban renewal area, decent, safe, and sanitary dwellings equal in 
number to the number of and available to such displaced individuals 
and families and reasonably accessible to their places of emplojmient. 
The Secretary shall issue rules and regulations to aid in implement- 
ing the requirements of this subsection and in otherwise achieving 
the objectives of this title. Such rules and regulations shall require 
that there be established, at the earliest practicable time, for each 
urban renewal project involving the displacement of individuals, 
families, and business concerns occupying property in tlie urban re- 
newal area, a relocation assistance program ^ which shall include such 
measures, facilities, and services as may be necessary or appropriate 
in order (A) to determine the needs of such individuals, families, and 
business concerns for relocation assistance; (B) to provide informa- 
tion and assistance to aid in relocation and otherwise minimize the 
hardships of displacement, including'^ information as to rerJ estate 
agencies, brokers, and boards in or near the urban renewal area which 



1 Sec 406. Housing Act of 1959, Public Law 86-372, approved September 23, 1959. 73 
Stat. 654. 673 added tills proviso. 

a Sec. 305(a) (1), Housinpr Act of 1964. Public Law 88-560, approved September 2, 1964, 
78 Stat. 769, 786. inserted "individuals and". 

Sec. 30r)(;i)(2) of the Ilousinjr Act of 1904 provided that the reqiiirpment imyiosed for 
the rolocation of individm^s from urhnn ronewnl aroas shnll not bp anplicMble to onv pro'ect 
receiving Federal recognition prior to the date of enactment of that Act (September 2, 
1904). 

3 Sec. 305(b), Housing Act of 1964. Public Law 88-560, approved September 2, 1964, 78 
Stat. 769. 786, added the requirement for a relocation assistance program. 

Sec. .305 (c^ Housing Act of 1964. Public Law 88-560, approved September 2, 1964, 78 
Stat. 769, 786, amended the Small Business Act (15 U.S.C. 637) to direct the Small Busi- 
ness Administration to provide relocation assistance and information for small business 
concerns to be displaced from urban renewal areas, at the earliest practicable time. 

*Sec. 305(a), Housing and Urban Development Act of 1965. Public Law 89-117, ap- 
proved August 10. 196."), 79 Stat. 4^1, 475. added the further reouirement that a relocation 
assistance program include information as to real estate agencies, brokers, and boards in or 
rear the urban renewal area which deal in residential or business propertv that might be 
I appropriate for relocating displaced individuals, families, and business concerns. 



1115 



§105 URBAN RENEWAL 

deal in residential or business property that mi^ht be appropriate for 
the relocating of displaced individuals, families, and business con- 
cerns; and (C) to assure the necessary coordination of relocation 
activities with other project activities and other planned or proposed 
governmental actions in the community which may affect the carrying 
out of the relocation program, particularly ^ planned or proposed 
low-rent housing projects to be constructed in or near the urban 
renewal area. 

(2)^ As a condition to further assistance after the enactment of 
this paragraph with respect to each urban renewal project involving 
the displacement of individuals and families, the Secretary shall re- 
quire, within a reasonable time prior to actual displacement, satis- 
factory assurance by the local public agency that decent, safe, and 
sanitary dwellings as required by the first sentence of this subsection 
are available for the relocation of each such individual or family. 

(3)^ Within one year after the date of the enactment of this para- 
graph, and every two years thereafter, the Secretary shall review each 
locality's relocation plan under this subsection and its effectiveness in 
carrying out such plan. 

(d) No land for any project to be assisted under this title shall be 
acquired by the local public agency except after public hearing follow- 
ing notice of the date, time, place, and purpose of such hearing. 

(e)* No understanding with respect to, or contract for, the disposi- 
tion of land within an urban renewal area shall be entered into by a 
local public agency unless the local public agency shall have first made 
public, in such form and manner as may be prescribed by the Secre- 
tary, (1) the name of the redeveloper, together with the names of 
its officers and principal members, shareholders and investors, and 
other interested parties, (2) the redeveloper's estimate of the cost of 
any residential redevelopment and rehabilitation, and (3) the redevel- 
oper's estimate of rentals and sales prices of any proposed housing 
involved in such redevelopment and rehabilitation: Provided^ That 
nothing in this subsection shall constitute a basis for contesting the 
conveyance of, or title to, such land. 

(f ) ^ A majority of the housing units provided in each community's 
total of such approved urban renewal projects as will be redeveloped 
for predominantly residential uses and which receive Federal recogni- 

1 Sec. 305(a). Housing and Urban Development Act of 1965, Public Law 89-117 
approved August 10, 1965, 79 Stat. 451, 475, added the words "particularly planned or 
proposed low-rent housing projects to be constructed in or near the urban renewal arefj." 

2 This par. (2) added by sec. 305(a), Housing and Urban Development Act of 1965, 
Public Law 89-117. approved August 10. 1965, 79 Stat. 451. 475. 

3 This par. (3) added by sec. 209, Housing and Urban Development Act of 1969, Public 
Law 91-152, approved December 24, 1969, 83 Stat. 379, 388. 

* Added by sec. 407. Housing Act of 1959, Public Law 86-372, approved September 23. 
1959. 73 Stat. 654, 673. 

Sec. 305(c) of the Housing and Urban Development Act of 1965 provided thnt the 
requirements Imposed by the amendments made by subsec. (a) of that section should 
not be applicable to any project which received Federal recognition prior to the date of 
thp pnactment of that Act (August 10. 1965). 

^ Sec. 512, Housing and Urban Development Act of 1968. Public Law 90-488, approved 
Aug. 1. 1908, 82 Stnt. 476, 524. amended subsection (f) to read as set forth in the t^xt. 
As originally added by sec. 703(a), Demonstration Cities nnd IVTetropolitan Development 
Act of 1066. Public Law 89-754, approved Nov. 3, 1966, 80 Stat. 1255, 1281, subsection (f) 
read as follows : 

"The redevelopment of the urban renewal area, unless such redevelopment is for nre- 
dominantly nonresidential uses will provide a substantial number of units of standard 
honsinc: of low and moderate cost and result in marked progress in serving the poor and 
disadvantaged people living in slum and Idighted areas." 

Sec. 70.1 fb) of the Demonstration Cities and iVTetroDolitan Develonment Art of 1966 
provides thnt the requirements of subsec. 105 (ft sh.nll apply only in the ease of contracts 
for loans or capital grants which are made with respect to'urban renewal projects under- 
taken pursuant to urban renewal plans approved after the date of the enactnient of that 
act (November 3. 1966). 

1116 



URBAN RENEWAL §106 

tion after the date of enactment of the Housing and Urban Develop- 
ment Act of 1968 shall be standard housing units for low and moderate 
income families or individuals : Provided, That the units in each com- 
munitv's total of such approved urban renewal projects which are for 
low-income families or individuals shall constitute at least 20 per cen- 
tum of the units in such projects, except that the Secretary may 
waive the requirement of this proviso in any community to the extent 
that units for low-income families and individuals are not needed. 
The Secretary shall promptly report any waiver under the proviso in 
the preceding! sentence to the Committees on Banking and Currency 
of the Senate and the House of Representatives. 

{gY Consideration has been given to development of a sewer system 
to serve the urban renewal area which will, to the maximum extent 
feasible, provide for effective control of storm and sanitary wastes. 

(h)2 If any urban renewal project which receives Federal recogni- 
tion after the date of the enactment of this subsection includes the 
demolition or removal of any residential structure or structures 
(whether or not it is a project taken into account for purposes of ap- 
plying subsection (f)), there shall be provided in the area within 
which the local public agency has jurisdiction (bj' construction or re- 
habilitation) standard housing units for occupancy by low and mod- 
erate income families (including but not limited to units provided 
under Federal- or State-assisted housing programs and including units 
of low-rent housing in private accommodations assisted under section 
23 of the United States Housing Act of 1937) at least equal in number 
to the number of units occupied by such families prior to the demolition 
or removal of such structure or structures : Provided, That the Secre- 
tary shall have authority where he deems it appropriate to take into 
account suitable housing outside such area for purposes of meeting 
the requirement of this subsection. If the Secretary finds that the per- 
centage of vacancies for all existing housing units in the area v/ithin 
which the local public agency has jurisdiction is 5 per centum or 
greater, he may waive the requirements of this subsection to the extent 
that he deterrnines there are existing standard housing units in such 
area which will be available for occupancy by low- and moderate- 
income families who are being displaced by the urban renewal project. 

GENERAL PROVISIONS 

Sec. lOG. (a) In the performance of, and with respect to, the func- 
tions, powers, and duties vested in him by this title, the Secretary, 
notwithstanding the provisions of any other law, shall— 

( 1 ) prepare annual ly and submit a budget program as provided 
for wholly owned Government corporations by the Government 
Corporation Control Act, as amended ; 

(2) maintain an integral set of accounts which shall be audited 
_ annually by the General Accounting Office in accordance with the 

principles and procedures applicable to commercial transactions 
as provided by the Government Corporation Control Act, as 
amended, and no other audit shall be required : Provided^ That 
such financial transactions of the Secretary as the making of 
I — - 

^ Added by boc. 706, Demonstration CMtles and Metropolitan Development Act of 1966, 

a o ^ ^■'^' ^'^^-"•'>4. approved November 3. 1966. 80 Stat. 1255. 1281. 
» ur""^^^*^°° ^^^ added by sec. 210, Housing and Urban Development Act of 1969. 
Public Law 91-152, approved December 24, 1969, 83 Stat. 379, 388. 

1117 



§ 106 URBAN RENEWAL 

advances of funds, loans, or grants ^ and vouchers approved by 
the Secretary in connection with such financial transactions shall 
be final and "conclusive upon all officers of the Government. 

(b). Funds made available to the Secretary pursuant to the 
provisions of this title shall be deposited in a checking account or 
accounts with the Treasurer of the United States. Keceipts and assets 
obtained or held by the Secretary in connection with the perform- 
ance of his functions under this title shall be available for any of the 
purposes of this title (except for grants ^ pursuant to section 103 
hereof), and all funds available for carrying out the functions of the 
Secretary under this title (including appropriations therefor, which 
are hereby authorized), shall be available, in such amounts as may 
from year to year be authorized by the Congress, for the adminis- 
trative expenses of the Secretary in connection with the perform- 
ance of such functions: Provided^ That necessary expenses of 
inspections and audits, and of providing representatives at the site, of 
projects being planned or undertaken by local public agencies pur- 
suant to this title shall be compensated by such agencies by the pay- 
ment of fixed fees which in the aggregate will cover the costs of 
rendering such services, and such expenses shall be considered non- 
administrative ; and for the purpose of providing such inspections 
and audits and of providing representatives at the sites, the Secretary 
may utilize any agency and such agency may accept reimbursement or 
payment for such services from such local public agencies or the 
Secretary, and credit such amounts to the appropriations or funds 
against which such charges have been made. 

(c) In the performance of, and with respect to, the functions, 
powers, and duties vested in him by this title, the Secretary, not- 
withstanding the provisions of any other law, may — 

(1) sue and be sued; 

(2) foreclose on any property or commence any action to pro- 
tect or enforce any right conferred upon him by any law, contract, 
or other agreement, and bid for and purchase at any foreclosure or 
any other sale, any project or part thereof in connection with 
which he has made a loan or capital grant pursuant to this title. 
In the event of any such acquisition, the Secretary may, not- 
withstanding any other provision of law relating to the acquisi- 
tion, handling, or disposal of real property by the United States, 
complete, administer, dispose of, and otherwise deal with, such 
project or part thereof: Provided^ That any such acquisition of 
real property shall not deprive any State or political subdivision 
thereof of its civil jurisdiction in and over such property or impair 
the civil rights under the State or local laws of the inhabitants on 
such property ; 

(3) enter into agreements to pay annual sums in lieu of taxes 
to any State or local taxing authority with respect to any real 
property so acquired or owned, and such sums shall approximate 
the taxes which would be paid upon such propert}?^ to the State 
or local taxing authority, as the case may be, if such property were 
not exempt from taxation ; 

1 Sec. 417(1), Housing Act of 1959, Public Law 86-372, approve«i Senff'mber 23, 1959, 
73 Stat. 654, 676, substituted "grants" for "capital grants". 



1118 



URBAN RENEWAL §106 

(4) sell or exchange at public or private sale, or lease, real or 
personal property, and sell or exchange any securities or obliga- 
tions, upon such terms as he may fix ; 

(5) obtain insurance against loss in connection with property 
and other assets held ; 

(6) subject to the specific limitations in this title, consent to 
the modification, with respect to rate of interest, time of payment 
of any installment of principal or interest, security, amount of 
grant, or any other term, of any contract or agreement to which 
he is a party or which has been transferred to him pursuant to 
this title ; 

(7) include in any contract or instrument made pursuant to 
this title such other covenants, conditions, or provisions (including 
sucli covenants, conditions, or provisions as, in the determination 
of the Secretary, are necessary or desirable to prevent the pay- 
ment of excessive prices for the acquisition of land in connection 
AN'itli projects assisted under this title) as lie may deem necessary 
io assure that the purposes of this title will be achieved. No pro- 
vision of this title shall be construed or administered to permit 
speculation in land holding; and 

(8)^ make advance or progress payments on account of any 
grant - contracted to be made pursuant to this title, notwithstand- 
ing the provisions of section 3648 of the Revised Statutes, as 
amended, or anv other provisions of this title. 

(e) Not * more than 121^ per centum of the grant funds provided 
for in this title shall be expended in any one State : Provided^ That the 
Secretary, without regard to such limitation, may enter into contracts 
for grants aggregating not to exceed $100,000,000 (subject to the total 
authorization provided in section 103(b) of this title) with local 
public agencies in States where more than two-thirds of the maximmn 
grants permitted in the respective State under this subsection has 
been obligated. 

(f)' 

(g) ° No provision permitting the new construction of hotels or other 
housing for transient use in the redevelopment of any urban renewal 
area under this title shall be included in the urban renewal plan unless 
the community in which the project is located, under regulations 
prescribed by the Secretary, has caused to be made a competent inde- 
pendent analysis of the local supply of transient housing and as a 
result thereof has determined that there exists in the area a need for 
additional units of such housing. 



1 Par. 8 added by Public Law 370, 82d Congress, approved June 3. 1952, 66 Stat 98, 
pursuant to this title If the amount of such contract does not exceed $1,000. 

2 Sec. 417(1). Housing Act of 1959. Public Law 86-372, approved September 23, 1959, 
73 Stat. 654, 676, substituted "grant" for "capital grant". 

2 Immediatelv prior to repeal by sec. 1020(a), Demonstration Cities and Metropolitan 
Development Act of 1966, Public Law 89-754. approved November 3. 1966. 80 Stat. 1255, 
1295. snbsoc. (d) read as follows : "Section 3709. as amended, of the Revised Statutes shall 
not apply to any contract for services or supplies on account of any property acquired." 

"♦ Immediately Prior to amendment by sec. 408. Housing Act of 1059. Public Liw 86-372 
approved September 23. 1959, 73 Stat. 654. 673, the language preceding the proviso read as 
follows : 

"Not more than 121:. per centum of the funds provided for in this title, either in the form 
of loans or gmnts. shall be expended in any one State". 

^Authority for relocation payments originally authorized by this subsection was incor- 
porated with additional provisions in a new sec. 114 bv sec. 310 (a), Housing Act of 1964, 
Public Law S8-560. approved September 2. 1964. 78 Stat. 769, 788. 

'Added by sec. 410. Housing Act of 1959, Public Law 86-372, approved September 23, 
1959. 73 Stat. 654. 674. 



1119 



§106 URBAN RENEWAL 

(h)^ Notwithstanding any other provision of this title, no contract 
shall be entered into for any loan or capital grant under this title with 
any local public agency unless the local public agency establishes, by 
eviden.ce satisfactory to the Secretary, that any urban renewal project 
with respect to which such local public agency has received a loan or 
capital grant under this title has Jbeen, or will be, undertaken and car- 
ried out in substantial accordance with the urban renewal plan, and any 
amendments thereto, approved with respect to such project, and the 
terms of the contract for loan or capital grant covering such project. 

(i)^ Upon determination of the Secretary that the local public 
agency does not expect to be able in the reasonably near future, due 
to circumstances beyond its control, to dispose of urban renewal proj- 
ect land acquired in accordance with the urban renewal plan and that 
all other project activities are completed except local grant-in-aid 
activities designated in the third proviso to section 110(d) under the 
conditions specified therein, and that a closeout of the urban renewal 
project pursuant to this subsection would be in the financial interest 
of the Federal Government, the urban renewal project may be deemed 
completed, net project cost may be computed, and the capital grant 
paid. To facilitate these actions, the Secretary may pay to the local 
public agency a grant, in addition to the capital grant otherwise pay- 
able, equal to one-third (or one-fourth in the case of projects funded 
on the three-fourths capital grant basis) of the estimated disposition 
proceeds of such land as accepted by the Secretary. No local grant-in- 
aid shall be required on account of this additional grant. The approval 
of the Secretary shall be obtained prior to the disposition of such 
land by the local public agency and net proceeds realized from the 
disposition of such land after project closeout shall be paid to the 
Secretary by the local public agency. 

PROPERTY TO BE USED FOR PUBLIC IIOUSIXG OR IIOUSIXG FOR MODERATE 

IXCOME FAMILIES ^ 

Sec. 107. (a)^ Upon approval of the Secretary and subject to such 
conditions as he may determine to be in the public interest, any real 

1 Added by sec. 306, Housing and Urban Development Act of 1965, Public Law 89-117, 
apDroved August 10, 1965, 79 Stat. 451, 476. 

3 Immediately prior to amendment by sec. 218(a), Housing and Urban Development Act 
of 1969, Public Law 91-609, approved December 31, 1970, 84 Stat. 1770, 1779, section 
106(1) read as follows : 

"(i) Upon a determination by the Secretary that (1) not more than 5 per centum of 
the total area of land acquired as part of an urban renewal project remains to be disposed 
of, (2) the local public agency does not expect to be able, due to circumstances beyond Its 
control, to dispose of such land in the near future, (3) all other Droject activities are 
completed, and (4) the local public agency has agreed to dispose of or retain such land 
for uses in accordance with the urban renewal plan, the urban renewal project may be 
deemed completed, and the net project cost may be computed and the capital grant paid." 

3 Immediately prior to amendment by sec. 306(a)(1), Housing Act of 1961, Public Law 
87-70. approved .Tune 30. 1961. 75 Stat. 149, 168, the title of sec. 107 read : "PAYMENT 
FOR LAND USED FOR LOW-RENT PUBLIC HOFSING". 

* Sec. 306. Housing Act of 1964, Public Law 88-560, approved September 2. 1964, 78 
Stat. 769, 786, amended sees. 107 (a) and (b) to permit the sale of real property in an 
urban renewal area at a special reduced price to purchasers for the purpose of providing 
for low- or moderate-income individuals. Prior to this amendment the sale of such prop- 
erty at a special reduced price was limited to low- or moderate-income families. 

Sec. 306 of the Housing Act of 1964 further amended sec. 107(b) to perm't the dis- 
position of real oroperty in an urban renewal area for housing for low-income families at 
the same reduced price as for housing for moderate income families. 

Sec. 505. Housing and Urban Development Act of 1968. Public Law 90-448, approved 
Aug. 1, 1968, 82 Stat. 476, 522, .amended sec. 107(a) to permit land to be disposed of for 
both low- and moderate-income housing. :ind by lease as well as sale at a price consistent 
with its use for such purposes. Disposition was also permitted to mortgagors under the 
new interest rate subsidy programs for lower income families, or to approved purchasers or 
lessees other than those specified as well as mortgagors under the sec. 221(h)(1) program. 



1120 



URBAN RENEWAL §108 

property held as part of an urban renewal project may be made avail- 
able to '^(1) a limited dividend corporation, nonprofit corporation or 
association, cooperative, or public body or agency, or other approved 
purchaser or lessee, or (2) a purchaser or lessee who would be eligible 
for a mortgage insured imder section 221 (d) (3) or (d) (4), section 
221(h) (1), section 235 (j) (1), or section 236 of the National Housing 
Act, for purchase or lease at fair value for use by such purchaser or 
lessee in the provision of new or rehabilitated housing for occupancy 
by families or individuals of low or moderate income : Provided^ That 
when property is made available under clause (1) to an approved pur- 
chaser or lessee other than a limited dividend corporation, nonprofit 
corporation or association, cooperative, or public body or agency, the 
Secretary shall assure that the benefits of this subsection will go to 
the occupant of the property rather than to such purchaser or lessee. 

(b) When it appears in the public interest that real property ac- 
quired as part of an urban renewal project should be used in whole or 
in part for a low-rent housing project assisted under the United States 
Housing Act of 1937, or under a State or local program found by the 
Secretary to have the same general purposes as the Federal program 
under such Act, the property shall be made available to the public 
housing agency undertaking the low-rent housing project at a price 
equal to its fair value, as determined in accordance with subsection (a) , 
and such amount shall be included as part of the development cost of 
such low-rent housing project: Provided^ That the local contribution 
in the form of tax exemption or tax remission required by section 10 
(h) of such Act, or by analogous provisions in legislation authorizing 
such State or local program, with respect to \h^ low-rent housing 
project into which such property was incorporated on or after Sep- 
tember 23, 1959, shall (if covered by a contract which, in the determi- 
nation of the Secretar}^ of Housinoj and Urban Development, will as- 
sure that such local contribution will be made during the entire period 
that the project is used as low-rent housing within the meaning of such 
Act, or by provisions found by the Secretary to give equivalent assur- 
ance in the case of the State or local programs) be accepted as a local 
grant-in-aid equal in amount, as determined by the Secretary, to one- 
half (or one-third in the case of an urban renewal project on a three- 
fourths capital grant basis) of the difference between the cost of such 
property (including costs of land, clearance, site improvements, and 
a share, prorated on an area basis, of administrative, interest, and other 
project costs) and its sales price, and shall be considered a local grant- 
in-aid furnished in a form other than cash within the meaning of sec- 
tion 110(d) of this Act. 

SURPLUS FEDERAL REAL PROPERTY 

Sec. 108. The President ^ may at any time in his discretion, transfer 
or cause to be transferred, to the Secretary any right, title, or interest 
held by tlie Federal Government or any department or agency thereof 
in any hind (including buildino-s tliereon) wliicii is surplus to tlie 
needs of the Government and which a local public agency certifies will 

iSec. 505(6), Housinff and Urban Development Act of 1968, Public Law 90-448. 
approved Aus- 1. 1968. 82 St.it. 476. 522. added this proviso. 

^Executive Order 11230, issued June 28, 1965, 30 Fed. Reg. 8447, provides that the 
Director of the Bureau of the Budget is designated and empowered to perform this function 
of the President without the. approval, ratificaaon, or other action of the President. 

1121 



§ 110 URBAN RENEWAL 

be within the area of a project being planned by it. When such land is 
sold to the local public agency by the Secretary, it shall be sold at a 
price equal to its fair market value, and the net ^ proceeds from such 
sale shall be covered into the Treasury as miscellaneous receipts. 

PROTECTION OF LABOR STANDARDS 

Sec. 109. In order to protect labor standards — 

(a) any contract for loan or capital grant pursuant to this title shall 
contain a provision requiring that not less than the salaries prevailing 
in the locality, as determined or adopted (subsequent to a determina- 
tion under applicable State or local law) by the Secretary, shall be 
paid to all architects, technical engineers, draftsmen, and technicians 
employed in the development of the project involved and shall also 
contain a provision that not less than the wages prevailing in the lo- 
cality, as predetermined by the Secretary of Labor pursuant to the 
Davis-Bacon Act (49 Stat. 1011), shall be paid to all laborers and 
mechanics, except such laborers or mechanics who are employees of 
municipalities or other local public bodies, employed in the deA^elop- 
ment of the project involved for work financed in whole or in part with 
funds made available pursuant to this title ; and the Secretary shall 
require certification as to compliance with the provisions of this para- 
graph prior to making any payment under such contract ; and 

(b) the provisions of title 18, United States Code, section 874, and 
of title 40, United States Code, section 276c, shall apply to work 
financed in whole or in part with funds made available for the develop- 
ment of a project pursuant to this title. 

DEFINITIONS 

Sec. 110. The following terms shall have the meanings, respectively, 
ascribed to them below, and, unless the context clearly indicates other- 
wise, shall include the plural as well as the singular number : 

(a) "Urban renewal area" m.eans a slum area or a blighted, deterio- 
rated, or deteriorating area in the locality involved which the Sec- 
retary approves as appropriate for an urban renewal project. 

(b) "Urban renewal plan" means a plan, as it exists from time to 
time, for an urban renewal project, which plan (1) shall conform to 
the general plan of the locality as a whole and to the workable pro- 
gram referred to in section 101 hereof and shall be consistent with 
definite local objectives respecting appropriate land uses, improved 
traffic, public transportation, public utilties, recreational and com- 
munity facilities, and other public improvements; and (2) shall be 
sufficiently complete to indicate, to ^ the extent required by the Sec- 
retary for the making of loans and grants under this title such land 
acquisition, historic and architectural preservation,^ demolition and re- 
moval of structures, redevelopment, improvements, and rehabilitation 
as may be proposed to be carried out in the urban renewal area, zon- 



1 Sec. 206, Ho^-sing and Urban Development Act of 1970, Public Law 91-609, approved 
December 31, 1970, 84 Stat. 1770, 1777, inserted at this point the word "net". 

2 Sec. 412, Housing Act of 1959, Public Law 86-372, approved September 23, 1959, 73 
Stat. 054, 075, inserted ", to the extent required by the Administrator for the making of 
loans and grants under this title,". 

3 Sec. 601(a), Demonstration Cities and Metropolitan Development Act of 1966, Public 
Law 89-754, approved November 3, 1966, 80 Stat. 1255, 1278, inserted "historic and 
architectural preservation.". 



1122 



URBAN RENEWAL §110 

ing and planning changes, if any, land uses, maximum densities, and 
building requirements. 

(c)^ "Urban renewal project" or "project" may include undertak- 
ings and activities of a local public agency in an urban renewal area for 
the elimination and for the prevention of the development or spread of 
slums and blight, and may involve slum clearance and redevelopment 
in an urban renewal area, or rehabilitation or conservation in an urban 
renewal area,^ or anv combination or part thereof, in accordance with 
sucli urban renewal plan. Such undertakings and activities may 
include — . , i • 

(1) acquisition of (i) a slum area or a deteriorated or deterio- 
rating area, or (ii) land which is predominantly open and which 
because of obsolete platting, diversity of ownership, deterioration 
of structures or of site improvements, or otherwise, substantially im- 
pairs or arrests the sound growth of the community, or (iii) open 
land necessary for sound community growth which is to be developed 
for predominantly residential uses, or ^ (iv) air rights in an area con- 
sisting principally of land in highways, railway or subway tracks, 
bridge or tunnel entrances, or other similar facilities which have a 
blighting influence on the surrounding area and over which air 
rights sites are to be developed for the elimination of such blighting in- 
fluences and for the provision of housing (and related facilities and 
uses) designed specifically for, and limited to, families and individuals 
of low or moderate income or * if the area is found by the local public 
agency to be unsuitable for use for low or moderate income housing, 
for use for the development of industrial or educational facilities, or ^ 
(v) land or space which is vacant, unused, underused, or inappro- 
priately used (including infrequently used rail yards and rail storage 
facilities, and excessive or vacated railroad rights-of-way ; air rights 
over streets, expressways, railroads, waterways, and similar locations ; 
land which is occupied by functionally obsolete nonresidential build- 
ings or is used for low-utility purposes or is covered by shallow water 
or is subject to periodic flooding or consists of unused or underused 
slips or dock areas or other waterfront property ; which land or space 
the Secretary determines may be developed (at a cost reasonably re- 
lated to the public purpose to be served) without major residential 

1 Sec. 302(b) of the Housing Act of 1956, Public Law 1020, 84th Congress, approved 
August 7, 1956, 70 Stat. 1091, 1097, consolidated the provisions in the definition of "urban 
renewal project" to avoid overlappin^r and duplication, and made the "predominantly 
residential" requirement applicable to the urban renewal area as a whole, rather thajn only 
to parts of the area which were to be cleared and redeveloped. 

' The phrase "or a program of code enforcement in an urban renewal area," was deleted 
by sec. 311(b)(1). Housing and Urban Developm.ent Act of 1965, Public Law 89-117, 
approved August 10, 1965, 79 .^tat. 451, 478. This phrase had been inserted by sec. 301(b), 
Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 78 Stat. 769. 785. 
A new sec. 117, relating to code enforcement, was added to the Housing Act of 1949 
by sec. 311(a), Housing and Urban Development Act of 1965. 

"This clause added by sec. 308(a)(1). Housing Act of 1964, Public Law 88-560. ap- 
proved September 2, 1964, 78 Stat. 769, 787. 

* Sec. 702(a), Demonstration Cities and Metropolitan Development Act of 1966. Public 
Law 89-754, approved November 3, 1966, 80 Stat. 1255, 1281, amended sections 110(c) 
(1) and (7) to permit air rights sites in urban renewal projects to be used for industrial 
d<^velopment if determined to be unsuitable for use for low- and moderate-Income housing, 
and to permit the cost of construction of foundations and platforms for air rights 
industrial sites to be counted as part of gross project cost. 

Sec. 511, Housing and Urban Development Act of 1968, Public Law 90-448, approved 
Aug. 1, 1968. 82 Stat. 476. 524, amended sec. 110(c) to permit the carrying out of air 
rights urban renewal projects and the construction of foundations and platforms to provide 
educational facilities. 

5 Sec. 741 (b), Housing and Urban Development Act of 1970, Public Law 91-609, approved 
December 31, 1970, 84 Stat. 1770, 1805, Inserted clause (v) and also the reference to this 
clause (v) in the first proviso immediately following this clause. 



1123 



§110 



URBAN RENEWAL 



clearance activities, and with full consideration to the preservation of 
beneficial aspects of the urban and natural environment, for such uses 
as are consistent with emphasis on housing for low- and moderate- 
income families, including the provision of schools, hospitals, parks, 
and other essential public facilities, and, where appropriate, all uses 
associated with new communities in town or similar large scale under- 
takings related to inner city needs, including concentrated sources of 
employment: Provided^ That the requirement in paragraph (a) of 
this section that the area be a slum area or a blighted, deteriorated or 
deteriorating area shall not be applicable in the case of projects ^ under 
clauses (iii) , (iv) , and (v) hereof : Provided further^ That the aggre- 
gate amount of capital grants for projects under clause (iv) shall not 
exceed 5 per centum of the aggregate amount of grants authorized by 
this title to be contracted for after the date of enactment of the Hous- 
ing Act of 1964 ; » 

(2) demolition and removal of buildings and improvements; 

(3) installation, construction, or reconstruction of streets, utili- 
ties, parks, playgrounds, pedestrian * malls and walkways (including 
in the case of an enclosed mall or walkway any necessary roofs, walls, 
columns, lighting, and climate control facilities) , and other improve- 
ments necessary for carrying out in the urban renewal area the urban 
renewal objectives of this title in accordance wdth the urban renewal 
plan; 

(4) disposition of any property acquired in the urban renewal area 
(including sale,^ leasing or retention by the local public agency itself) 
at its fair value for uses in accordance with the urban renewal plans 
or ^ as provided in section 107 ; 

(5) carrying out plans for programs ^ of code enforcement or volun- 
tary repair and rehabilitation of buildings or other improvements in 
accordance with the urban renewal plan ; ^ 

(6) acquisition of any other real property in the urban renewal area 
where necessary to eliminate unhealthful, insanitary or unsafe con- 
ditions, lessen density, eliminate obsolete or other uses detrimental to 
the public welfare, or otherwise to remove or prevent the spread of 

1 Sec. 308(a) <2), Housing Act of 1964, Public Law 88-560, approved September 2. 1964, 
78 Stat. 769, 787, substituted "projects under clauses (iil) and (iv) hereof" for "an 
open land project ;" 

2 This proviso added by sec. 308(a)(3), Housing Act of 1964, PubUc Law 88-560, ap- 
proved September 2, 1964, 78 Stat. 769, 787. 

3 September 2, 1964. 

* Sec 204(a), Housing and Urban Development Act of 1969, Public Law 91-152, ap- 
proved December 24, 1969, 83 Stat. 379, 387, inserted "pedestrian malls and walkways" 
and also the language that immediately follows in parenthesis. 

5 Sec. 314(c), Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 75 Stat. 
149, 172, deleted the word "Initial". 

« Sec. 306(b), Housing Act of 1961, Public Law 87-70, approved June 30, 1961. 75 Stat. 
149, 168, inserted "or as provided in section 107 :". 

'Sec. 301(c), Housing Act of 1964, Public Law 88^60, approved September 2, 1964, 
78 Stat. 769, 785, substituted "programs of code enforcement or" for "a program of". 

Sec. 301(d) of the Housing Act of 1964 provided that any contract for a capital grant 
under title I of the Housing Act of 1949, executed prior to the date of enactment of the 
Housing Act of 1964 (September 2, 1964), may be amended to incorporate the provisions 
of subsec. (c) of sec. 301 for code enforcement costs incurred on or after such date. 

8 Sec. 311(b)(2), Housing and Urban Development Act of 1965, Public Law 89-117, 
approved August 10, 1965, 79 Stat. 451, 478. deleted a proviso which made the inclusion 
of expenditures for code enforcement activities in an urban renewnl project contingent 
upon agreement by a community to increase its total expenditures for such activities by 
an amount equal to its share of the project cost attributable to the code enforce.'iient activ- 
ities in the project area. This proviso had been inserted by sec. 301(c), Housing Act of 
1964, Public Law 88-560, approved September 2, 1964, 78 Stat. 769. 7S5. A new sec. 
117, relating to code enforcer.ent, was added to the Housing Act of 1949 by sec. 311(a), 
Housing and Urban Development Act of 1965. 



1124 



URBAN RENEWAL §110 

blight or deterioration, to promote historic and architectural preser- 
vation,^^ or to provide iand for needed public facilities; 

(7)2 Construction of foundations and platforms necessaiy for the 
development of air rights sites in accordance with the provisions of 
clause (iv) or (v) of paragraph (1) of this subsection. 

(8)^ acquisition and repair or rehabilitation for resale by the local 
public agency, of structures which are located in the urban renewal 
area and which, under the urban renewal plan, are to be repaired or 
rehabilitated for dwelling use or related facilities ; 

(O)"* relocation within or outside the project area of structures which 
will be restored and maintained for architectural or historic purposes ; 
and 

(10) restoration of acquired properties of historic or achitectural 
value. 

Xotv/ithstanding ^ any other provision of this title, (A) no contract 
shall be entered into for any loan or capital grant under this title for 
any project which provides for demolition and removal of buildings 
and improvements unless the Secretary determines that the objec- 
tives of the urban renewal plan could not be achieved through re- 
liabilitation of the project area, and (B)^ not less than 10 per centum 
of the aggregate amount of (i) grants authorized to be contracted for 
under tliis title by the Housing and Urban Development Act of 1965 
and subsequent Acts, and (ii) loans authorized to be made under sec- 
tion 312 of the Housing Act of 1964, shall be available for projects 
assisted with such grants or loans which involve primarily code en- 
forcement and rehabilitation. 

For the purposes of this title, the term "project" shall not include 
(except ^ as provided in paragraph (3) with resjDect to enclosed pedes- 
trian malls and walkways and as provided in paragraphs (7), (8),^ 

1 Sec. G01{a), Uemonstratlou Cities and Metropolitan Development Act of 1966, Public 
Law 80-754, approved November 8. 1966. SO Stat. 1255, 127S, amended par. (6) to read 
and architectural preservation. 

'Immediately prior to amendment by sec. 741(c), Housing and Urban Development Act 
of 1970. Public Law 91-609, approved December 31, 1970, 84 Stat 1770, 1805, paragraph 
(7) read as follows : 

"(7) Construction of foundations nnd platforms necessary for the provision on air 
rights sites of housing (and related facilities and uses) designea specifically for, and limited 
to, families and individuals of low or moderate Income, or construction of foundations and 
platforms necessary for the provision of air rights sites for the development of industrial 
or education facilities ;". 

3 Sec. 504, Housing and Urban Development Act of 1968, Public Law 90—448, approved 
Aug. 1, 1968, 82 Stat. 476, 521, removed provisions which (1) limited the number of resi- 
dential units which a local urban renewal agency could acquire and rehabilitate, and 
(2) limited the rehabilitation to "guidance purposes". 

* Sec. 601(c), Demonstration Cities and Metropolitan Development Act of 1966, Public 
Law 89-754, approved November 3, 1966, 80 Stat. 1255. 1278. amended par. (9) to read 
as set forth in the text and added (10). Immediately prior to amendment by sec. 601(c) 
of the Demonstration Cities and ^letropolitan Development Act of 1966, par. (9) read as 
follows : 

"(9) relocating within the project area a structure which the local public agency deter- 
mines to be of historic value and which will be disposed of to a public body or a private 
nonprofit organization which will renovate and maintain such structure for historic 
purposes." 

Tills par. (9) had originally been added by sec. 309(a)(3). Housing and Urban Develop- 
ment Act of 1965, Public Law 89-117, approved August 10, 1965. 79 Stat. 451, 477. 

.''This paragraph down to the end of clause (A) added by sec. 307. Housing Act of 1964, 
Public Law 88-560, approved September 2. 1964, 78 Stat, 769. 787. 

« Clause (B) added by sec. 307, Housing and Urban Development Act of 1965, Public 
Law 89-117, approved August 10, 1965, 79 Stat. 451, 476. 

'That part of this parenthetical phrase that refers only to par. (3) was inserted by 
sec. 204(b). Housing and Urban Development Act of 1969, Public Law 91-152, approved 
December 24. 1969, 83 Stat. 379, 387. That part of this parenthetical phrase that refers 
only to par. (7) was Inserted by sec. 307(b), Housing Act of 1961, Public Law 87-70, 
approved June 30. 1961, 75 Stat. 149, 178. 

8 Sec. 308(b) (3), Housing Act of 1964, Public Law 88-1560. approved September 2, 1964, 
78 Stat. 769. 788. inserted the reference to par. (8). 



1125 



§110 URBAN RENEWAL 

(9)/ and (10) above) the construction or improvement by any build- 
ing, and the term "redevelopment" and derivatives thereof shall mean 
development as well as redevelopment. For any of the purposes of 
section 109 hereof, the term "project" shall not include any donations 
or provisions made as local grants-in-aid and eligible as such pursuant 
toclauses (2) and (3) of section 110(d) hereof. 

Financial ^ assistance shall not be extended under this title with re- 
spect to any urban renewal area which is not predominantly residential 
in character and which, under the urban renewal plan therefor, is not 
to be redeveloped for predominantly residential uses : Provided^ That, 
if the governing body of the local public agency determines that the 
redevelopment of such an area for predominantly nonresidential uses is 
necessary for the proper development of the community, the Secre- 
tary may extend financial assistance under this title for such a project : 
Promded further. That the aggregate amount of capital grants con- 
tracted to be made pursuant to this title with respect to such projects 
after the date of enactment of the Housing Act of 1959 ^ shall not 
exceed 30* per centum of the aggregate amount of grants autlior- 
ized by this title to be contracted for after such date : And provided 
further,^ That t\iQ aggregate amount of capital grants made avail- 
able under this title with respect to such projects after the date of the 
enactment of the Housing and Urban Development Act of 1965 " may 
be in an amount not to exceed (in addition to amounts previously avail- 
able for such projects) 35 per centum of the amount of additional 
capital grants authorized under this title by such Act. 

7 In addition to all other powers hereunder vested, where land with- 
in the purview of clause (1) (ii) or (1) (iii) of the first paragraph 
of this subsection (whether it be predominantly residential or non- 
residential in character) is to be redeveloped for predominantly non- 
residential uses, loans and advances under this title may be extended 
therefor if the governing body of the local public agency determines 
that such redevelopment for predominantly nonresidential uses is nec- 
essary and appropriate to facilitate the proper growth and develop- 
ment of the community in accordance with sound planning standards 
and local community objectives and to afford maximum opportunity 
for the redevelopment of the project area by private enterprise : Pro- 

1 Sec. 309(a)(4), Housing and Urban Development Act of 1965, Public Law 89-117, 
approved August 10, 1965, 79 Stat. 451, 477, added the reference to par. (9). 

2 Immediately prior to amendment by sec. 413, Housing Act of 1959, Public Law 86-372 
approved September 23, 1959, 73 Stat. 654, 675. this paragraph read as follows : 

"Financial assistance shall not be extended under this title with respect to any urban 
renewal area which is not clearly predominantly residential In character unless such area 
will be a predominantly residential area under the urban renewal plan therefor : Provided, 
That, where such an area which is not clearly predominantly residential in character con- 
tains a substantial number of slum, blighted, deteriorated, or deteriorating dwellings or 
other living accommodations, the elimination of which would tend to promote the public 
health, safety, and welfare in the locality involved and such area is not appropriate for 
predominantly residential uses, the Administrator may extend financial assistance for such 
a project, but the aggregate of the capital grants made pursuant to this title with respect 
to such projects shall not exceed 10 per centum of the total amount of capital grants 
authorized by this title." 

3 September 23, 1959. 

* Sec. 308, Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 7o Stat. 149, 
168. substituted "30 per centum" for "20 per centum". 

5 This proviso added by sec. 308, Housing and Urban Development Act of 1965, Public Law 
89-117, approved August 10. 1965, 79 Stat. 451, 477. 

« August 10, 1965. 

'Provisions of this paragraph enacted by sec. 106(c). Housing Amendments of 1955, 
Public Law 345, 84th Congress, approved August 11, 1955, 69 Stat. 635, 637. 



1126 



1 



URBAN RENEWAL §110 

vided, That loans and outstanding advances to any local public agency 
pursuant to the authorization of this sentence shall not exceed 21/2 
per centum of the estimated gross project costs of the projects under- 
taken under other contracts with such local public agency pursuant 
to this title. 

(d) "Local grants-in-aid" shall mean assistance^ by a State, mu- 
nicipality, or other public body, or (in the case of cash grants or dona- 
tions of land or other real property) any other entity, in connection 
with any project on which a contract for capital grant has been made 
under this title, in the form of (1) cash grants to^ defray expendi- 
tures within the purview of section 110(e) (1) hereof; (2) donations, 
at cash value, of land or other real property (exclusive of land in 
streets, alleys, and other public rights-of-way which may be vacated in 
connection with the project,^ or air rights over streets, alleys, and 
other public rights-of-way) in the urban renewal area, and demolition, 
removal, or other work or improvements in the urban renewal area, at 
the cost thereof, of the types described in clauses (2), (3), (7), (9), 
and (10) * of the second sentence of section 110(c) ; and (3) the pro- 
vision, at their cost, of public buildings or other public facilities (other 
than publicly owned housing ^ and revenue producing public utilities 
the capital cost of which is wholly financed with local bonds or obli- 
gations payable solely out of revenues derived from service charges) 
which are necessary for carrying out in the area the urban renewal 
objectives of tliis title in accordance with the urban renewal plan : 
Provided^ That in any case where, in the determination of the Secre- 
tary, any park, playground, public building, or other public facility is 
of direct benefit both to the urban renewal area and to other areas, and 
the approximate degree of the benefit to such other areas is estimated 
by the Secretary at 20 per centum or more of the total benefits, the Sec- 
retary shall provide that, for the purpose of computing the amount 
of the local grants-in-aid for the project, there shall be included only 
such portion of the cost of such facility as the Secretary estimates 
to be proportionate to the approximate degree of the benefit of such 
facility to the urban renewal area: Provided further.^ That any 
publicly owned facility, the construction of which was begun not 
earlier than three years prior to the date of enactment of the Demon- 
stration Cities and Metropolitan Development Act of 1966, shall be 

' Sec. 414 (b>. Houslnj? Act of 1959, Public Law S6-372, approved September 23, 1959, 
73 Stat. 654, 675. provided as follows : 

"The requirement in section 110(d) of the Housing Act of 1949 that the assistance 
provided by a State, municipality, or other public body under that section, in order to 
qualify as a local Krant-in-ald, shall be In connection with a project on which a contract 
for capital jjrant has been made under title I of that Act, shall not apply to .''ssjstance 
provided durinc: the period from July 1, 1957, through December 31, 1957, in connection 
with urban renewal actlvltle': which were extended Federal recognition within sixty days 
after the provision of such assistance was initiated." 

2 The words "to defray expenditures within the purview of section llO(eMl) hereof." 
added by sec. 302(3), Housing Act of 1957, Public Law 85-104, approved July 12, 1957, 
71 Stat. 294. 300. 

'Sec. .S08(c). Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 
78 Stat. 760. 788, inserted the remainder of this parenthetical phrase. 

«"Sec. 602, Demonstration Cities and Metropolitan Develonment Act of 1960, Public 
Law 89-754. approved November 3, 1966, 80 Stat. 1255, 1278, added clauses (9) and (10). 

^ The phrnse ", puUlic facilities financed by special assessments acainst land in the 
project area" was deleted at this point by sec. 302(c), Housing Act of 1956, Public Law 
1020. 84th Congress, approved August 7, 1956. 70 Stat. 1091, 1099. 

« Sec. 701, Demonstration Cities and Metropolitan Development Act of 1966, Public 
Law 89-754, approved November 3, 1966, 80 Stat 1255, 1280. inserted this proviso. 



1*5-705 0-79-15 



§110 URBAN RENEWAL 

deemed to benefit an urban renewal project or projects to the extent 
of 25 per centum of the total benefits of such facility, or $3,500,000, 
whichever is less, if such facility (A) (i) is used, or is to he used, 
by the public predominantly for cultural, exhibition, or civic pur- 
poses, or is a city hall or a public safety building, or (ii) is a facility, 
constructed or rehabilitated by or ^ on behalf of a public university, 
which is or will be devoted to the treatment of physical or mental dis- 
abilities and illness or to medical research ; (B) is located within, adja- 
cent to, or in the immediate vicinity of such urban renewal project or 
projects; (C) is found to contribute materially to the objectives of the 
urban renewal plan or plans for such project or projects ; and (D) is 
not otherwise eligible as a local grant-in-aid : And provided further^ 
That for the purpose of computing the amount of local grants-in-aid 
under this section 110(d) with ^ respect to any project covered by a 
Federal -aid contract under this title, the estimated cost (as determined 
by the Secretary) of parks, playgrounds, public buildings, or other 
public facilities may be deemed to be the actual cost thereof if (i) the 
construction or provision thereof is not completed at the time of final 
disposition of land in the project to be acquired and disposed of under 
the urban renewal plan, and (ii) the Secretary has received assur- 
ance satisfactory to him that such park, playground, public building, 
or other public facility wdll be constructed or completed when needed 
and within a time prescribed by him : And provided further^ That in 
any case where a public facility furnished as a local grant-in-aid is 
financed in whole or in part by special assessments against real prop- 
erty in the project area acquired by the local public agency as part of 
the project, an amount equal to the total special assessments against 
such real property (or, in the case of a computation pursuant to the 
proviso immediately preceding, the estimated amount of such total 
special assessments) shall be deducted from the cost of such facility 
for the purpose of computing the amount of the local grants-in-aid for 
the project. With respect to any demolition or removal work, im- 
provement or facility for which a State, municipality, or other public 
body has received or has contracted to receive any grant or subsidy 
from the United States, or any agency or instrumentality thereof, the 
portion of the cost thereof defrayed or estimated by the Secretary 
to be defrayed with such subsidy or grant shall not be eligible for 
inclusion as a local grant-in-aid.* 

1 Sec. 206, Housing and Urban Development Act of 1969, Public Law 91-152, approved 
December 24. 1909. 83 Sta( 379, 387, Inscted "or on behalf of". 

a The phrase "with respect to any project covered by a Federal-aid contract under this 
title," inserted bv sec. 306, Housing Act of 1957, Public Law 85-104, approved July 12, 
3 957. 71 Stat. 294, 301. 

3 This proviso added by sec. 302(c), Housing Act of 1956, Public Law 1020, 84th Con- 
gress, approved August 7, 1956, 70 Stat. 1091, 1099. 

* This sentence amended to read as set forth in the text by sec. 311. Housing Act of 
1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 626. As 
originally enacted this sentence read : "No demolition or removal work, improvement, or 
facility for which a State, municipality, or other public body has received or has con- 
tracted to receive any grant or subsidy from the United States, or any agency or instru- 
mentality thereof, for such work, or the construction of such improvement or facility, shall 
be eligible for inclusion as a local grant-in-aid in connection with a project or projects 
assisted under this title." 

See sec. 304, Terntorl.il Enabling Act of 1950, Public Law 615, 81st Congress, approved 
July 18. 1950, 64 Stat. 344 (Virgin Islands). 

See sec. 20, District of Columbia Redevelopment Act of 1945, as amended, Public Law 
592, 79th Congress, 60 Stat. 790, District of Columbia Code, Title 5, sec. 7l7a. 



1128 



Il 



URBAN RENEWAL § 110 

Xotwithstanding any other provision of this subsection, (except^ 
the second sentence of this paragraph) no donation or provision of 
a public improvement or public facility of a type falling within the 
purview of this subsection shall be deemed to be ineligible as a local 
grant-in-aid for any project solely on the basis that the construction 
of such improvement or facility was commenced without notification 
to the Secretary or prior to Federal recognition of such project, if 
such construction was commenced not more than three years prior to 
the authorization by the Secretary of a contract for loan or capital 
grant for the project. In connection with any project for which an 
application is filed not later than the date of the enactment of the 
Housing and Urban Development Act of 1969 and which has not 
received Federal recognition (other than a project to which clause 
(2) of the second sentence of section 133(a) applies), the three-year 
period referred to above shall be extended to a period of four years 
prior to the authorization by the Secretary of a contract for loan or 
capital grant for the project. 

Where ^ a project in any municipality^ includes an area affected by 
an underground mine fire or by a coal mine subsidence and where it is 
necessary in such project to remove any underlying coal deposits in 
order to stabilize the soil or to control the underground mine fire, tlien 
any royalties received by tlie project from the removal and sale of 
such coal deposits shall be credited to the project as a local grant-in- 
aid made by such municipality. 

(e)^ "Gross project cost*' shall comprise (1) the amount of the ex- 
penditures by the local public agency with respect to any and all under- 
takings necessary to carry out the project (including the payment of 
carrying charges, but not beyond the point where the project is com- 
pleted), and (2) the amount of such local grants-in-aid as are fur- 
nished in forms other than cash. There may be included as part of the 

1 Sec. 203(a). Houslnsr and Urban Development Act of 1969. Public Law 01-152. ap- 
proved December 24. 1969. 83 Stat. 379. 386. Inserted this parenthetical phrase and also 
added the second sentence of this parapraph. The first sentence of this paragraph was 
added by sec. 414(a). Housing Act of 1959. Public Law 86-372. approved September 23, 
1959. 73 Stat. 654. 675. 

3 Sec. 314(a), Housing and Urban Development Act of 1065, Public Law 89-117 ap- 
proved Anz 1st 10. 1905, 79 Stat. 451, 479. added this paragraph. 

Sec. 314(b) of the Housing and Urban Development Act of 19G5 authorized urban 
renewal contracts executed prior to the date of enactment of that Act (August 10, 1965) 
ti he amended to permit the crediting of coal royalties received by an urban renewal 
project as a local grant-in-aid. 

3 Immediately prior to amendment by sec. 415, Housing Act of 1959. Public Law 86-372 
approved September 23, 1959, 73 Stat 654, 675, the first sentence in this section read as 
follows : 

"(e) 'Gross project cost' shall comprise (1) the amount of the expenditures by the local 
public agency with respect to any and all undertakings necessary to carry out the project 
(including the payment of carrying charges, but not beyond the point where the project is 
completed), ar.i (2) the amount of such local grants-in-aid a'^ are furnished in forms other 
than cash : Provided, That with respect to a project for which a contract for capital grant 
has been executed on a three-fourths basis pursuant to the proviso in the second sentence 
of section 10.1(a). gross project cost shall include, in lieu of the amount specified in clause 
(1) the anionnt of the expenditures by the local public agency with respect to the following 
undertakings and activities necessary to carrv out such project : 

"(i) acquisition of land (but only to the extent of the consideration paid to the 

. owner and not title, appraisal, negotiating, legal, or any other expenditures of the 

local public agency incidental to acquiring land), disposition of land, demolition and 

removal of buildincrs and Improvements, and site preparation and improvements all as 

provule<i in paragraphs ri). (2) ,(3). (i). and (6) of section 110(c) and 

(H) .he payment of carrying charges related to the undertakings in clause (1), 
exclnsive of taxes and payments in lieu of taxes, but not bevond the point where such 
project IS completed ; . i i. > c cuv.ii 

fimu1H^i^' n ?ll. '^^ ^"''' ""^^^"^ undertakings and activities (Including, but without being 
flSi nvihpV ^v°.'^ ""^ surveys and plans, legal services of any kind, and nil administrative 
and overhead expenses of the local public agency) with respect to such project." 



1129 



§110 URBAN RENEWAL 

gross project cost, under any contract for loan or grant heretofore or 
hereafter executed under this title, with respect to moneys of the local (: 
public agency which are actually expended and outstanding for under- 
takings (other than in the form of local grants-in-aid) necessary to 
carry out the project, in the absence of carrying charges on such 
moneys, an amount in lieu of carrying charges which might otherwise 
have iDcen payable thereon for the period such moneys are expended ji 
and outstanding but not beyond the point where the project is com- li 
pleted, computed for each six-month period or portion thereof, at ji 
an interest rate to be determined by the Secretary after taking into]] 
consideration for each preceding six-month period the average interest y, 
rate borne by any obligations of local public agencies for short-term ji 
funds obtained from sources other than the Federal Government in i 
the manner provided in section 102(c) : Provided^ That such amount ji 
may be computed on the net total of all such moneys of the local public 
agency remaining expended and outstanding, less other moneys re- 
ceived from the project undertaken in excess of project expenditures, 
in all projects of the local public agency under this title and allocated^ 
as the Secretary may determine, to each of such projects. With respect | 
to a project for which a contract for capital grant has been executed | 
on a three-fourths basis pursuant to section^ 103(a)(2)(C), gross ! 
project cost shall include, in lieu of the amount specified in clause (1) ■ 
above, the amount of the expenditures by the local public agency with : 
respect to the following undertakings and activities necessary to carry j 
out such project: \ 

(i) acquisition of land (but only to the extent of the coiiriiderr- j 
tion paid to the owner and not title, appraisal, negotiatino-, lerral, • 
or any other expenditures of the local public agency incidental to j 
acquiring land), disposition of land, stnf?^ services in coni-iection \ 
with programs of code enforcement and voluntary rehabilitation 
and repair (including community organization), demolition and , 
removal of buildings and improvements, and site preparation and i 
improvements, all as provided in paragraphs (1), (2), (3), (4), ' 
(5), (6), (7),^ (S),' (9), and (10)^ of subsection (c) ; and 

(ii) the payment of carrying charges related to the imdertak- 

ings in clause (i) (including amounts in lieu of carryino; charges 

as determined above), exclusive of taxes and payments in lieu of 

taxes, but not beyond the point where such project is com.pleted ; 

but not the cost of any other undertakings, and activities (includino;, 

but without being limited to, the cost of surveys and plans, legal serv- 

1 J?cc. 301(c), Housini? Act of 1961, Public Law 87-70, approved June 30, lOfil, 7n S+at. 
149. 160, substituted "section lOb(a) (2) (C)" for "the proviso in the second sentence of 
section 103(a)". 

2 Sec. 310(a). Housin.2: and Urban Development Act of 1965, Public Law 89-117. 
approved Ang'.ist 10, 1965. 79 Stat. 451, 477, inserted "staff services in connection with 
programs of code enforcement and voluntary rehabilitation and repair (includin<' com- 
munity or.cranization)," and also inserted "(5)" in the enumerated paragraphs that follow 

Sec. 310(b) of the Housing and Urban Development Act of 1965, provided that urban 
renewal contracts executed before the date of the enactment of that Act (August 10 1965) 
may be amended to incorporate the provisions of subsec. (a) as to costs incurred on 
or after that date. 

c,/l^^^:.,^^^lL•^^ ^^^"!.'?.^-,"^,?* °^ ^^^^' 'P^^^^f^ Law 87-70, approved June 30, 1961. 75 
Stat. 149, 168, inserted "(7)". 

^r,*^^^^-Ji9.^lVr: Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 
78 Stat. <69. 788, inserted (8)". 

5 Sec. 1722(c), Housing and Urban Development Act of 1968, Public Law 90-448 ap- 
proved August 1, 1968 82 Stat. 476, deleted "and (9)" in clause (i) and inserted in lieu: I 
thereof (9), ana (10) . 



1130 



URBAN RENEWAL §110 

ices of anv kind, and all administrative and overhead expenses of the 
local public agency) ^vith respect to such project. Where ^ real prop- 
erty in the project area is acquired and is owned as pail of the project 
by "the local public agency and such property is not subject to ad 
valorem taxes by reason of its ownership by the local public agency 
and payments iii lieu of taxes are not made on account of such prop- 
er! v, there mav (with respect to any project for which a contract of 
Federal assistance under this title is in force or is hereafter executed, 
other 2 than a project on which a contract for capital grant is made on 
a three-fourths basis pursuant to section 103(a) (2) (C) be included, 
at the discretion of the Secretary, in gross project cost an amount 
equal to the ad valorem taxes which would have been levied upon such 
property if it had been subject to ad valorem taxes, but in all cases 
prorated for the period during which such property is owned by the 
local public agency as part of the project, and such amount shall also 
be considered a cash local grant-in-aid within the purview of section 
110(d) hereof. Such ^ amount, and the amount of taxes or payments 
in lieu of taxes included in gross project cost, shall be subject to the 
approval of the Secretary and such rules, regulations, limitations, 
and conditions as he may prescribe. 

Where * a project includes the aquisition of property which has 
been damaged because of the collapse or subsidence of underlying coal 
mines, or underground mine fires, and the property is to be acquired 
from an individual, family, business concern, or nonprofit organization 
which was the owner of such property at the time the damage first 
occurred, the amount otherwise allowable as the acquisition price of 
such property may be increased by an amount equal to so much of any 
diminution in the value of such property as is determined to be reason- 
ably attributable to such damage and to represent an otherwise uncom- 
pensated and (but for such acquisition) uncompensable loss actually 
sustained by such owner. 

(f) "Net project cost'' shall mean the difference between the gross 
project cost and the aggregate of (1) the total sales prices of all land 
or other property sold, and (2) the total capital values (i) imputed, 
on a basis approved by the Secretary, to all land or other property 
leased, and (ii) used as a basis for determining the amounts to be 
transferred to the project from other funds of the local public agency 
to compensate for any land or other property retained by it for use in 
accordance with the urban renewal plan.^ 

(g) ''Going Federal rate'' means (with respect to any contract for 
a loan or advance entered into after the first annual "rate has been 



1 See. 311(b) of the Housing Act of 1964 provided that any contract under title I of the 
Honsinc: Act nf 1049 executed prior to the date of enactment of the Housdng Act of 1964 
(September 2. 1964) may be amended to provide for payment of the increased amounts 
authorized under subsec. (a) of sec. 311 "with respect to any uncompleted project 
if the project includes acquisitions which, under any State or local law in effect on such 
date, wo'ild involve expenditures by a local public agency that could not otherwise bo 
Included in the costs of such project." 

^Lnntruaire In the parenthesis after "or is hereafter executed" inserted bv sec. 302(5), 
Hmisin? Act of 1957. Public Law 85-104. approved July 12. 1957, 71 Stat. 294. 300. 

3 This sentence added by sec. 302(d), Hoisinc Act of 1956, Public Law 1020, S4th 
Consross. approved August 7. 195G. 70 Stat. 1091. 1099. 

_ * -Sec. 311(a). Housing Act of 1964, Public Law SS-560, approved September 2, 1064, 
.b Stat. 769. 7')0. added this pnragranh. 

^ Sec. 213(b). Housing and Urban Development Act of 1970. Public L;iw 91-609. approved 
December 31. 1970. S4 Stat. 1770. 1779, deleted at this point the balance of this sf^ntence 
wnicii read : ' or for subsequent disposition or retention as provided under section 106(1).". 



1131 



§110 URBAN RENEWAL 



specified as provided in this sentence) the annual rate of interest 
which the Secretary of the Treasury shall specify as applicable to ' 
the six-month period (beginning with the six-month period ending , 
December 31, 1953) during which the contract for loan or advance ^ 
under this title is authorized by the Secretary, which applicable rate ! 
for each six-month period shall be determined by the Secretary of ! 
the Treasury by estimating the average yield to maturity, on the basis i 
of daily closing market bid quotations or prices during the month of i 
May or the month of November, as the case may be, next preceding 
such six-month period, on all outstanding marketable obligations of the 
United States having a maturity date of fifteen or more years from 
the first day of such month of May or November, and by adjusting such 
estimated average annual yield to the nearest one-eighth of 1 per cen- 
tum. Any 2 contract for a loan or advance, authorized by the Secre- 
tary after the date of enactment of the Housing Act of 1964,^ shall 
provide for a single interest rate which shall be applicable also to 
future amendments of the contract which provide additional funds 
thereunder, and shall further provide for a periodic revision of the 
interest rate on the balance outstanding or to be outstanding on such 
loan or advance based on the going Federal rate on the date of such 
revision : Provided^ That any contract for a loan or advance authorized 
prior to the date of enactment of the Housing Act of 1964 shall be 
amended (with the first amendment to such contract authorized after 
the date of enactment of such Act) to provide for such a single inter- 
est rate (based on the goin^ Federal rate at the time such amendment 
is authorized) and for periodic revision thereof. 

(h) "Local public agency" means any State, county, municipality, 
or other governmental entity or public body, or two or more such 
entities or bodies, authorized to undertake the project for which assist- 
ance is sought. The term "State" ^ includes the several States, the Dis- 
trict of Columbia, the Commonwealth of Puerto Rico, the Trust Terri- 
tory of the Pacific Islands, the territories and possessions of the United 
States, and Indian tribes, bands, groups, and nations, including Alaska 
Indians, Aleuts, and Eskimos, of the United States. 

(i) "Land" means any real property, including improved or unim- 
proved land, structures, improvements, easements, incorporeal heredit- 
aments, estates, and other rights in land, legal or equitable. 

(j) "Secretary" means the Secretary of Housing and Urban 
Development. 



I 



iSec. 303(b). Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 
78 Stat. 709, 7 85. deleted at this point the words "for any project". 

2 Sec. 300. Housinc: Act of 1964, Pubfic Law SS-.^GO, approved September 2. 1964, 78 
Stat. 769, 788, substituted this sentence for th-i following : 

"Anv sucii contract for loan made mav be revised or superseded by a later contract, so 
that tiie going Federal rate, on the basis of which the interest rate on the loan is fixed, 
shall mean the going Federal rate, as herein defined, on the date that such later contract 
is authorized." 

3 September 2, 1964. 

* Sec. 202(a), Housing and Urban Development Act of 1969, Public Law 91-152, ap- 
proved December 24. 19(>9, 83 Stat. 379, 385, amended the term "State" to include the 
Trust Territory of the Pacific Islands, and ludian tribes, bands, groups, and nations. 
Including Alaska Indians, Aleuts, and Lskiraos, of the United States. 



1132 

i 



URBAN RENEWAL § 111 

(k)^ "Federal recognition" means execution of any contract for 
financial assistance under this title or concurrence by the Secretary 
in the commencement, without such assistance, of surveys and plans. 

DISASTER AREAS 

Sec. 111.2 Where the local governing body certifies, and the Sec- 
retary finds, that an urban area is in need of redevelopment or re- 
i habilitation as a result of a flood, fire, hurricane, earthquake, storm, 
: or other catastrophe Avhich the President, pursuant to section 2(a) of 
the Act entitled "An Act to authorize Federal assistance to States and 
. local governments in major disasters, and for other purposes" (Public 
ai Law 875, Eighty-first Congress, approved September 30, 1950), as 
• amended, has determined to be a major disaster, or ^ which the Secre- 
tary has determined is in need of sucli redevelopment or rehabilitation 
i. as a result of a riot or civil disorder, he is authorized to extend finan- 
ii cial assistance under this title for an urban renewal project with re- 
L'jl spect to such area Avithout regard to the following : 

(1) the "workable program" requirement in section 101(c), 
except that any contract for temporary loan or capital grant 

ir pursuant to this section shall obligate the local public agency to 

\f comply with the "workable program" requirement in section 101 

(c) by a future date determined to be reasonable by the Secretary 

and specified in such contract; 

(2) the requirements in section 105(a) (iii) and section 110(b) 
(1) that the urban renewal plan conform to a general plan of the 
locality as a whole and to the workable program referred to in 
section 101(c) ; 

(3) the "relocation" requirements in section 105(c) : Provided, 
That the Secretary finds that the local public agency has pre- 
sented a plan for the encouragement, to the maxinmm extent fea- 
sible, of the provision of dwellings suitable for the needs of 
families displaced by the catastrophe or by redevelopment or re- 
habilitation activities; 

(4) the "public hearing" requirement in section 105(d) ; 

(5) the requirements in sections 102 and 110 that the urban 
renewal area be a slum area or a blighted, deteriorated, or de- 
teriorating area ; and 

(6) the requirements in section 110 with respect to the predomi- 

Inantly residential character or predominantly residential re-use 
of urban areas. 
In the preparation of the urban renewal plan with respect to a project 
aided under this section, the local public agency shall give due regard 
to the removal or relocation of dwellings from the site of recurring 
floods or other recurring catastrophes in the project area. 

iSec. 417(3), Housing Act of 1959. Public Law 86-372. approved Septomber 23. 1959, 
73 Stat. fi54. 077. added subsec. (k). 

=»-Sec. Ill added by sec. 307 of the Housing Act of 1956, Public Law 1020, 84th Congress 
approved August 7. 1956. 70 Stat. 1091. 1101. 

'Sec. llOG(d), Housing and Urban Development Act of 1908. Public Law 90-448, 
approved Aug. 1, 1908, 82 Stat. 470. 567. added "or which the Secretary has determined Is 
in need of such redevelopment or rehabilitation as a result of a riot or civil disorder". 



1133 



§112 URBAN RENEWAL 

URBAN RENEWAL AREAS INVOLVING COLLEGES, UNIVERSITIES, OR HOSPITALS 

Sec. 112.^ (a) In any case where an educational institution or a 
hospital is located in or near an urban renewal project area and the 
governing body of the locality determines that, in addition to the elim- 
ination of slums and blight from such areas, the undertaking of an 
urban renewal project in such area will further promote the public 
welfare and the proper development of the community (1) by making 
land in such area available for disposition, for uses in accordance 
with the urban renewal plan, to such educational institution or hospi- 
tal for redevelopment in accordance with the use or uses specified in 
the urban renewal plan, (2) by providing, through the redevelopment 
of the area in accordance with the urban renewal plan, a cohesive 
neighborhood environment compatible with the functions and needs 
of such educational institution or hospital, or (3) by any combination 
of the foregoing, the Secretary is authorized to extend financial 
assistance under this title for an urban renewal project in such area 
Avithout regard to the requirements in section 110 hereof with respect 
to the predominantly residential character or predominantly residen- 
tial re-use of urban renewal areas. The aggregate expenditures made 
by any such institution or hospital (directly or through a private re- 
development corporation or municipal or other public corporation) 
for the acquisition within, adjacent to, or in the immediate vicinity 
of the project area, of land, building, and structures to be redeveloped 
or rehabilitated by such institution for educational uses or by such 
liospital for hospital uses in accordance with the urban renewal plan 
(or with a development plan proposed by such institution, hospital, 
or corporation, found acceptable by the Secretary after consider- 
ing the standards specified in section 110(b), and approved under 
State or local law after public hearing) and for the demolition of 
such buildings and structures if, pursuant to such urban renewal or 

1 Immediatelv prior to amendment by sec. 309, Housing Act of 1961, Public Law 87-70, 
approved June 30. 1061, T3 Stat. 149, 169, sec. 112 read as follows : 

"Sec. 112. In any case where an educational institution is located in or near an urban 
renewal project area and the governing body of the locality determines that, in addition 
to the elimination of slums and blight from such area, the undertaking of an urban renewal 
project in such area will further promote the public welfare and the proper development 
of the community (7) by making land in such area available for disposition, for uses in 
accordance with the urban renewal plan, to such educational institution for redevelop- 
ment in accordrnce with the use or uses specified in the urban renewal plan, (2) by pro- 
viding, through the redevelopment of the area in accordance with the urban renewal plan, 
a cohesive neighborhood environment compatible with the functions and needs of such 
educational institution, or (3) by any combination of the foregoing, the Administrator is 
authorized to extend financial assistance under this title for an urban renewal project 
in such area without regard to the requirements in section 110 hereof with respect 
to the predominantly residential character or predominantly residential reuse of urban 
renewal areas : Provided, That the aggregate expenditures made by such institution 
(directly or through a private redevelopment corporation) for the acquisition (from others 
than the local public agency), within, adjacent to, or in the Immediate vicinity of the 
proiect flre^. of land, buildings, and structures to be redeveloped or rehabilitated by such 
institution for educational uses in accordance with the urban renewal plan (or with a 
development plan proposed by such institution or corporation, found acceptable by the 
Administrator after considering the standards specified in section 110(b), and approved 
under State or local law after public hearing), and for the demolition of such buildings 
and structures (including expenditures to as?!ist in relocating tenants therefrom), if pur- 
suant to such urbnn renewal or development plan, the land is to be cleared and redeveloped, 
as certified by such institution to the local public agency and approved by the Adminis- 
•^ ^i^'^*" 'I" ^'^' ^ ^^^"^'^ gra it in-aid in connpction with such urban renewal project: Pro- 
vided further. That no such expenditures shall be deemed ineligible as a local grant-in-aid 
in connection with any such project if made not more than five vears prior to the author- 
ization by the Administrator of a contract for a loan or capital grant for such urban 
renewal project : And provided further. That the term 'educational institution' as used 
Herein suall mean any educational institution of higher learning, including anv public 
educational institution or any private educational institution, no part of the net earnings 
of which shall inure to tlie benefit of any private shareholder or individual." 



1134 



URBAN RENEWAL §112 

development plan, the land is to be cleared and redeveloped, and for 
tJie relocation of occupants from buildin<:^s and structures to be de- 
molished or rehabilitated, as certified by such institution or hospital 
to the local public a^-ency and approved by the Secretar}^, shall be 
a local grant-in-aid in connection with such urban renewal project; 
Provided^ That no such expenditure shall be eligible as a local grant- 
in-aid in any case where the property involved is acquired by such 
educational institution or hospital from a local public agency which, 
in connection with its acquisition or disposition of such property, has 
received, or contracted to receive, a capital grant pursuant to this 
title : Provided further^ That no such expenditures shall be deemed 
ineligible as a local grant-in-aid in connection with an urban renewal 
project, to the extent that the expenditure is otherwise eligible, if the 
facilities, land, buildings, or structures with respect to which the ex- 
penditure is made are located within one mile of the project. 

(b) Subject " to the second sentence of this subsection, no expendi- 
ture made by any educational institution or hospital, as provided in 
subsection (a), shall be deemed ineligible as a local grant-in-aid (1) in 
connection with any urban renewal project if made not m.ore than 
seven years prior to the authorization by the Secretary of a contract 
for a loan or capital grant for such project, or (2) in connection with 
any such project for which the Secretary, prior to September 25, 1963, 
las authorized a loan or capital grant contract if made not more than 
ive years prior to the submission of an application for financial assist- 
ance under this title for such urban renewal project. In connection 
with any project for which an application is filed not later than the 
date of the eiiactment of the Housing and Urban Development Act of 
1969 and which has not received Federal recognition (other than a 
project to which clause (2) of the second sentence of section 133(a) 
applies), the seven-year period referred to in clause (1) of the preced- 
ing sentence shall be extended to a period of eight years prior to the 
authorization by the Secretaiy of a contract for a loan or capital arrant 
for the project. 

/iVT^? aggregate expenditures made by any public authority, 
established by any State, for acquisition, demolition, and relocation 
m connection with land, buildings, and structures acquired by such 
public authority and leased to an educational institution for educa- 
tional uses or to a hospital for hospital uses shall be deemed a local 
grant-in-aid to the same extent as if such expenditures had been made 
directly by such educational institution or hospital. 
( d ) As used m this section— 
\r.^}] f^"" term "educational institution" means any educational 
nsH ntinn t ^^^^^^>^™^g. including any public educational 
nPt P.rZ^^ f y P^;;^.^te educational institution, no part of the 
hlTr^o^fdrv^^ ^^ ^^- ^-^^^ «f -y P--te share- 

■StS in whi^h !;^.TPi^^^''.T^^'/^^ ^^^^Pi^^^l li^^^^s^d by the 
__^tate^in which such hospital is located, including any public 

^lllX '-^^^o^^^^^lVS^^^ of 19G6. Public Law 

•See. 203(b), Houslnff and IJrhnn nill^L^'^'i' \^^^' «^^«<^ this proviso, 
approved DecemW 24/ 196^83 StarST^lifi^'^n^o^'^^^^^^ ^^^9. Public Law 91-152 
sentence of tbia subsection/' and also IddedthP«/.!f^^*^^ 7°'^^ ''Subject to the second 

aibo anaed the second sentence of this subsection (b). 



1135 



§113 URBAN RENEWAL 

hospital, or any nonprofit hospital, no part of the net earnings of 
^vliich inures to the benefit of any private shareholder or 
individual. 

REDEVELOPMENT AREAS UNDER l^HE AREA REDEVELOPMENT ACT 

Sec. 113.^ (a) Whenever the Secretary of Commerce certifies to 
the Secretary (1) that any county, city, or other municipality (in 
this section referred to as a "municipality") is situated in an area 
designated under section 5 of the Area Redevelopment Act ^ as a rede- 
velopment area, and (2) that there is a reasonable probability that 
with assistance provided under such Act and other undertakings the 
area will be able to achieve more than temporary improvement in its 
economy, the Secretary is authorized to provide financial assistance 
to a local public agency in any such municipality under this title and 
the provisions of this section. 

(b) Subject to the provisions of subsections (e) of this section, the 
Secretary may provide such financial assistance under this section 
without regard to the requirement or limitations of section 110(c) that 
the project area be predominantly residential in character or be rede- 
veloped for predominantly residential uses under the urban renewal 
plan, and without regard to any of the limitations of that section on the 
undertaking of projects for predominantly nonresidential uses. 

(c) Notwithstanding any other provisions of this title, a contract for 
financial assistance under this section may include provisions permit- 
ting the disposition of any land in the project area designated under 
the urban renewal plan for industrial or commercial uses to any public 
agency or nonprofit corporation for subsequent disposition as promptly 
as practicable bv such public agency or corporation for the redevelop- ; 
ment of the land in accordance with the urban renewal plan : Provided^ 
That any disposition of such land to such public agency or corporation 
under this section shall be made at its fair value for uses in accordance ) 
with the urban renewal plan : A7id provided further^ That only the | 
purchaser from or lessees of such public agency or corporation, and t 
their assignees, shall be required to assume the obligations relating to J 
the commencement of improvements imposed under section 105(d) \ 
hereof. 

(d) Following the execution of any contract for financial assistance ) 
under this section with respect to any project, the Secretary may f 
exercise the authority vested in him under this section as well as other % 
provisions of this title for the completion of such projects, notwith- \ 
standing any determination made after the execution of such contract \ 
that the area in which the project is located is no longer a redevelop- j 
ment area under the Area Redevelopment Act. I 

(e) Not more than 10 per centum of the funds authorized for capital | 
grants under section 108 after the date of the enactment of the Area 1 
Redevelopment Act shall be used for the purpose of providing finan- 1 
cial assistance under this section. Amounts used for such purpose shall \ 
not be taken into account for the purpose of the limitation contained in j 
the second proviso of the fifth sentence of section 110(c). 

1 Rec. 14. Area Redevelopemnt Act, PiiDlIc Law 87-27, approved May 1, 1961, 75 Stat. I 
47, 57. added sec. 113. ^ 

2 The i^rea Redevelopment Act was superseded by the Public Works and Economic Devel- \ 
opment Act of 1965, Public Law 89-3 S6, 79 Stat. 552, 42 U.S.C. 3121. i 



1136 



URBAN RENEWAL §114 

RELOCATION (REPEALED)^ 

Sec. 114.^ (a) Notwithstanding any other provision of this title, an 
urban renewal project may include the making of payments as pre- 
scribed in this section to displaced individuals, families, business con- 
cerns, and nonprofit organizations; and any contract for financial 
assistance under this title shall provide that the capital grant other- 
wise payable for the project shall be increased by an amount equal to 
such payments and that no part of the amount of such payments shall 
be required to be contributed as part of the local grant-in-aid. As used 
in this section, ''displaced" refers to displacement from an urban re- 
newal area made necessary by (1) the acquisition of real property by 
a local public agency or by any other public body, (2) code enforce- 
ment activities undertaken in connection with an urban renewal proj- 
ect, or (3) a program of voluntary rehabilitation of buildings or other 
improvements in accordance witli an urban renewal plan. 

(b) A local public agency may pay to any displaced business con- 
cern or nonprofit organization — 

(1) its reasonable and necessary moving expenses and any ac- 
tual direct losses of property except goodwill or profit (which are 
incurred on and after August 7, 1956, and for which reimburse- 
ment or compensation is not otherwise made) : Provided^ That 
such payment shall not exceed $3,000 (or, if greater, the total cer- 
tified actual moving expenses) : Provided further ^^ That the Sec- 
retary may authorize payment to displaced business concerns of 
fixed amounts in lieu of their total certified actual moving ex- 
penses where he determines that it is impractical for a displaced 
business concern to calculate the amount of such expenses ; and 

(2) an additional $2,500 ^ in the case of a private business con- 
cern with average annual net earnings of less than $10,000 per 
year which (A) was doing business in a location in the urban 
renewal area on the date of local approval of the urban renewal 
plan (or of acquisition of real property under the third sentence 
of section 102(a) ) ; (B) is displaced on or after January 27, 1964, 
and (C) is not part of an enterprise having establishments outside 
the urban renewal area. 

Notwithstanding the provisions of clause (1) of the preceding sen- 
tence, a business concern which is not being displaced from an urban 
renewal area shall be eligible for payments under such clause (1) of 
its * moving expenses with respect to its outdoor advertising displays 
being removed from the urban renewal area in the same manner as 
tliough such business concern were being displaced. 

(c) (1) A local public agency may pay to any displaced individual 
or family his or its reasonable and necessary moving expenses and 

iThls section 114 orlglnany added by sec. 310(a). Housing Act of 1964, Public Law 
88-560, ajiprnved September 2. 1964. 78 Stat. 769, 788, and repealed by sec. 220(a)(5) 
of tbe T'niform Relocation Assistance and Real Troperty Acquisition Policies Act of 3970, 
Public Law 91-646. approved January 2, 1971, 84 Stat. 1894, 1903. Howpvpr, this repeal 
is not immedintely pflFective in all States. See sec. 221 of the Uniform Relocation Assistance 
and Real Property Acquisition Policies .\ct of 1970. 

3 Sec. 212(a), Housing and Urban Development Act of 1970, Public Law 91-609 approved 
December .SI. 1970. 84 Stat. 1770. 1779, inserted this second proviso. 

3 Sec. 404(b). Housing and Urban Development Act of 1965. Public Law 89-117, approved 
August 10, 1065, 79 Stat. 451, 486, substituted "$2,500" for "?1,500". 

♦ ?e'-. 212(b), Ilonsin-r and Urban Development Act of 1970, Public Law 91-609 ap- 
proved Dec. 31. 1970, 84 Stat. 1770, 1779. deleted at this point the words "certmed actual". 



1137 



§114 URBAN RENEWAL 

any actual direct losses of property (which are incurred on and after 
August 7, 1956, and for which reimbursement oi' compensation is not 
otherwise made) : Provided, That such payment shall not exceed ^-200 : 
And provided further, That the Secretary may authorize Payment 
to individuals and families of fixed amounts (not to exceed ^200 m 
any case) in lieu of their respective reasonable and necessary moving 
expenses and actual direct losses of property. 

(2) In ^ addition to any amount under paragraph (1), a local pub- 
lic agency may pav to or on behalf of any displaced family, displaced 
individual sixty-two years of age or over, or displaced handicapped 
individual, monthly payments over a period not to exceed twenty-tour 
months in an amount not to exceed $500 in the first tv/elve moTiths 
and $500 in the second twelve months to assist such displaced family 
or individual to secure a decent, safe, and sanitary dwelling. 
The additional payment shall be an amount which, when added to 
20 per centum of the annual income of the displaced individual or 
family at the time of displacement, equals the average rental required, 
for a 12-month period, for such a decent, safe, and sanitary dwelling 
of modest standards adequate in size to accommodate the displaced 
individual or family (in the urban renewal area or in other oreas not 
generally less desirable in regard to public utilities and public com- 
mercial facilities) : Provided, That such payment shall be made only 
to an individual or family who is unable to secure a dwelling unit in 
a low-rent housing project assisted under the United States Housing 
Act of 1937 2 or under a State or local proo-ram found by the Secre- 
tary to have the same general purposes as the Federal program under 
such Act, or a dwelling unit assisted under section 101 ^ of the Housing 
and Urban Development Act of 1965: Provided further, That addi- 
tional payments under this paragraph may be paid on a lump sum or 
other than monthly basis in cases in which the small size of the pay- 
ments that would otherwise be required do not warrant a number of 
separate payments or in other cases in which other than monthly pay- 
ments are determined warranted by the Secretary : And provided fur- 
ther,^ That no payment received under this paragraph shall be con- 
sidered as income for the purpose of determining the eligibility or the 
extent of eligibility of any person for assistance under the Social Se- 
curity Act or any other Federal Act. 

(3) ^ In addition to any amount under paragraph (1), a local public 
agency may make a payment to a displaced family or individual, who 
does not receive the additional payment authorized under paragraph 
(2) and who is the owner of real property which is acquired for a 
project assisted under this title and which is improved by a single- or 
two-family dwelling occupied by the owner for a period of not less 
than one year prior to the initiation of negotiations for the acquisition j 

1 Sep. 516(1), Housing and Urban Development Act of 1968. Public Law 90-448, approved 
Aupr. 1, 1968, 82 Stat 476, 526, amended ihls sentence to read as set forth in the text 
Prior to amendment this sentence authorized a $500 payment over a 5-month period. 

' Low-income public housing law. 

" Rent supplement program. 

* Sec. 516(3). Housing and Urban Development Act of 1968. Public Law 90-448, ap- 
proved Aug. 1, 1968. 82 Stat. 476, 52o added this proviso and strucic out a proviso that 
limited payments under this paragraph to families or individuals 62 years of age or over 
and displaced on or after January 27. 1964. 

s Sec. 516(4), Housing and Urban Development Act of 1968, Public Law 90-448, 
approved Aug. 1. 1968, 82 Stat. 476, 526. added this paragraph. 



1138 



URBAN RENEWAL §115 

of such property. Such payment, not to exceed $5,000, shall be an 
amount which, when added to the acquisition payment, equals the aver- 
age price required for a decent, safe, and sanitary dwelling of modest 
standards adequate in size to accommodate the displaced owner, rea- 
sonably accessible to public services and places of employment and 
available on the private market : Provided^ That such payment may 
be made only to a displaced owner who purchases and occupies a dwell- 
ing within one year subsequent to the date on which he is required to 
move from the dwelling acquired for the project : Provided further^ 
That no such payment may be made if the owner-occupant receives a 
payment required by the State law of eminent domain which is deter- 
mined by the Secretary to have substantially the same purpose and 
effect as this paragraph and to be part of the cost of the project for 
I which Federal financial assistance is available. 

(d) ^ In addition to payments authorized to be made under subsec- 
j tions (b) and (c), a local public agency may pay to any displaced 

individual, family, business concern, or nonprofit organization reason- 
able and necessary expenses incurred for (1) recording fees, transfer 
taxes, and similar expenses incidental to conveying real property to 
a project assisted under this title, (2) penalty costs for prepayment of 
any mortgage encumbering such real property, and (3) the pro rata 
portion of real property taxes allocable to a period subsequent to the 
date of vesting of title or the effective date of the acquisition of such 
real property by such agency, whichever is earlier. 

(e) The Secretary is authorized to establish such rules and regula- 
tions as he may deem appropriate in carrying out the provisions of this 
section and may provide in any contract with a local public agency, or 
in regulations promulgated by the Secretary, that determinations of 
any duly designated officer or agency as to eligibility for and the 
amount of relocation assistance authorized by this section shall be final 
and conclusive for any purposes and not subject to redetermination by 
any court or any other officer. Such regulations shall include provisions 
to assure that relocation payments, as authorized by this section, shall 
be made as promptly as possible to all families, individuals, business 
concerns, and nonprofit organizations found to be eligible for such 
payments by reason of their having been displaced from property in 
the urban renewal area, without regard to any subsequent proceedings, 
determinations, or events relating to such property which do not bear 
upon whether such displacement in fact occurred. 

REHABILITATION GRANTS 

Sec. 115. (a) (1)^ Notwithstanding any other provision of this title, 
the Secretary may authorize a local public agency to make grants (and 
the urban renewal project may include the making of such grants) as 

iSec. 404(c)(1), Housing and Urban Development Act of 1965, Public Law 89-117, 
approved August 10. 19G5, 79 Stat. 451, 486, inserted subsec. (d). and redesignated the 
forijier suhsoc. (d) as "(e)". 

»Sec. 106(a), Housing and Urban Development Act of 1965. Public Law 89-117. ap- 
proyed Aug. 10. 1965. 79 Stat. 451. 457. added naragraph (1). 

Sec. 106(b) of the Housing and Urban Development Act of 1965 provided that any 
contract with a local public agency which was executed under title I of the Housing Act 
of 1949 before the date of enactment of the Housing and Urban Development Act of 1965 
(August 10, 1965) may be amended to provide for grants authorized by sec. 115 of the 
Housing Act of 1949. 



1139 



§ 115 URBAN RENEWAL 

prescribed in this section. Any such grant may be made only to an 
individual or family, as described in subsection (c), who owns and 
occupies real property ^ in an urban renewal area, and only for the 
purpose of covering the cost of repairs and improvement necessary to 
make such real property ^ conform to public standards for decent, safe, 
and sanitary housing as required by applicable codes or other require- 
ments of the urban renewal plan for the area. Any contract for finan- 
cial assistance under this title shall provide that the capital grant oth- 
erwise payable for the project shall be increased by an amount equal 
to the total amount of the grants under this section and that no part of 
the total amount of such grants shall be required to be contributed as 
part of the local grant-in-aid. 

(2) 2 In addition to the authority conferred by paragraph (1), and 
notwithstanding any other provision of this title, the Secretary is 
authorized, through the utilization of local public agencies Avhere 
feasible, to make grants (payable from any grant funds provided 
under section 103(b)) to an individual or family, as described in 
subsection (b), to cover the cost of repairs and improvements neces- 
sary to make real property owned and occupied by such individual or 
family conform to public standards for decent, safe, and sanitary 
housing. No grants shall be made under this paragraph in the case 
of any property, unless (A) such property is in an area within a 
locality (other than an urban renewal or code enforcement area) which 
the governing body of the locality has determined, and so certifies to 
the Secretary, contains a substantial number of structures in need of 
such repairs and improvements, (B) there is in effect for the locality a 
workable program meeting the requirements of section 101 (c) , and (C) 
the area is deiinitely planned for rehabilitation or concentrated code 
enforcement within a reasonable time, and such repairs and improve- 
ments to such property are consistent with the plan for rehabilitation 
or concentrated code enforcement. 

(b) ^ The Secretary is authorized to make grants (payable from 
any grant funds provided under section 103(b), through the utiliza- 
tion of local public and private agencies where feasible, to an individ- 
ual or family, as described in subsection (c), who owns and occupies 
real property which has been determined to be uninsurable because of 
physical hazards after an inspection pursuant to a statewide property 
insurance plan approved by the Secretary under title XII of the 
National Housing Act. Such grants may only be made to rehabilitate 
such property to the extent which the Secretary determines to be neces- 
sary to make it meet reasonable underwriting standards imposed by 
such plan. 

(c) * A grant authorized by this section may be made to an individ- 
ual or family whose income does not exceed $3,000 a year, and such 

iSec. 503(a), Housing and Urban Development Act of 1968. Public Law qO-44S An 
proved Aug. 1, 1968, 82 Stat. 476, 521, substituted "real property" for -s7ruct^e'' ^' 

2 Sec. 503(c), Housing and Urban Development Act of 1968 Public Law 90-44fi an 
proved Aug. 1, 1968, 82 Stat. 476, 521. added paragraph (2). 9U-448. ap- 

3 Sec. 503(d), Housing and Urban Development Act of 1968, Public Law q0-44fi nn 
proved Aug. 1. 1968. 82 Stat. 476, 521. added subsection (b). 9«>-448. ap- 

* Sec. 503(d), Housing and Urban Development Act of 1968 Public Law 00-449 
approved Aug. 1 1968, 82 Stat. 476, 521. redesignated this subsection as (c) In li^u of 
(b). This subsection was originally enacted by sec. 106(a). Housing and Urban Develop 
ment Act of 1965, Public Law 89-117, approved Aug. 10, 1965, 79 Stat. 451, 457^ 



1140 



URBAN RENEWAL § 116 

grant may be in the amount which does not exceed the lesser of (1) the 
actual (and approved) cost of the repairs and improvements involved, 
or (2) $3,500.^ In case the income of the individual or family exceeds 
$3,000 a year, a grant may be made under this section, subject to the 
limitations specified in clauses (1) and (2) of the preceding sentence, 
but only in an amount not to exceed that portion of the cost of the 
repairs and improvements which cannot be paid for with any available 
loan that can be amortized as part of such individual's or family's 
monthly housing expense without requiring such monthly housing 
expense to exceed 25 per centum of such individual's or family's 
monthly income. 

DEMOLITION 

Sec. 116.^ (a) Notwithstanding any other provision of this title, 
the Secretary is authorized to enter into contracts to make, and to 
make, grants as provided in this section (payable from any grant 
funds provided under section 103(b)) to cities, other municipalities, 
counties, and ^ Indian tribes, bands, groups, and nations, including 
Alaska Indians, Aleuts, and Eskimos, of the United States to assist 
in financing the cost of demolishing structures which under State or 
local law have been determined to be structurally unsound, a har- 
borairo * or potential harborage of ra<^?, or unfit for human habitation, 
and which such city, municipality, or county has authority to demolish. 
The amount of any grant under this section shall not exceed two-thirds 
of the cost of the demolition of such structures. 

(b) No grant shall be made under this section unless the structures 
to be demolished are located in an urban renewal area, or in the case 
of structures outside an urban renewal area, (1) the locality involved 
has an approved workable program for community improvement in 
accordance with the requirements of section 101(c), as determined by 
the Secretary, (2) the demolition to be assisted will be on a planned 
neighborhood basis and will further the over-all renewal objectives 
of such locality, or will ^ be consistent with a systematic rodent control 
program being undertaken in the neighborhood, (3) tliere is in such 
locality a program of enforcement of existing local housing and related 
codes, (4) the structures to be demolished constitute a public nuisance 
and a serious hazard to the public health or welfare, and (5) the 
governing body of such locality has determined that other available 
legal procedures have been exhausted to secure remedial action by the 
owner of the structures involved and that demolition by governmental 
action is required. 

1 Sec. 205. Housing and Urban Development Act of 1969, Public Law 91-152, approved 
December 24, 1969, 83 Stat. 379, 387. substituted *'$3,oOO" for "$3,000". 

« Added by sec. 311(a), Housing and Urban Development Act of 1965, Public Law 
89-117, approved August 10, 1965. 79 Stat. 451, 477. 

3 Sec. 202(b), Housing and Urban Development Act of 1969, Public Law 91-152, ap- 
proved December 24, 1969. 83 Stat. 379, 386, inserted "and Indian tribes, bands, groups, 
and naUons including Alaska Indians, Aleuts, and Eskimos, of the United States". 

*Sec. 510(a), Housing and Urban Development Act of 1968, Public Law 90-448, 
approved Aug. 1, 1968, 82 Stat. 476, 524, inserted "a harborage or potential harborage 
of xats". 

6 Sec. 510(b), Housing and Urban Development Act of 1968. Public Law 90-448 ap- 
proved Aug. 1, 1968, 82 Stat. 476. 524, inserted "or will be consistent with a systematic 
rodent control program being undertaken in the neighborhood". 



1141 



»jj^ URBAN RENEWAL 

CODE ENFORCEMENT 

Sfc 117 ^ Notwithstanding any other provision of this title, the 
Senary is authonzed^to enter ^into^c^^^^^^^^^^^^^^ -k^e. 




Indians Aleuts, and Eskimos, of the United States for the purpose 
ofAssistincr such localities in carrying out programs of concentrated 
code enforcr^ment in deteriorated or deteriorating areas m which such 
enforcement, topether with those public improvements to be provided 
bv the locality; may be expected to arrest the decline of the area. 
Such o-rants shall not exceed two-thirds (or three-fourths m the case 
of any city, other municipality, or county having a population oi 
50 000 or less according to the most recent decennial census) of the 
cost of planning and carrying out such programs which may include 
the provision and repair of necessary streets, curbs, sidewalks, street 
lip-hting, tree planting, and similar improvem.ents within such areas. 
The Secretary shall not make any grant under this section unless he 
has obtained "adequate assurances (1) that the locality will maintain 
during the period of the contract, in addition to its expenditures for 
plannTng and carrying out any program assisted under this section, 
a level oi expenditures for code enforcement activities at not less than 
its normal expenditures for such activities prior to the execution of 
such contract, and (2) that the locality has a satisfactory program 
for the provisions of ail necessary public improvements for such areas. 
The provisions of sections 101(c), 106, 114, and 115 shall be applic- 
able to activities and undertakings assisted under this section to the 
same extent as if such activities and undertakings were being carried 
out in an urban renewal area as part of an urban renewal project : Pro- 
vided^^ That the Secretary may, in addition to authorizing a local 
public agency to make grants as prescribed in section 115, make such 
grants through the utilization of local private nonprofit agencies. 

INTERIM ASSISTANCE FOR BLIGHTED AREAS 

Sec. 118.* Notwithstanding any other provision of this title, the 
Secretary is authorized to enter into contracts (in an aggregate amount 
not to exceed $15,000,000 in any fiscal year) to make, and to make, 
grants as provided in this section (payable from any grant funds pro- 
vided under section 103(b)) to cities, other municipalities, counties, 
and ^ Indian tribes, bands, groups, and nations, including Alaska 
Indians, Aleuts, and Eskimos, of the United States for the pur- 
pose of assisting such localities in carrying out programs to 

1 Added by sec. 311(a), Housing and Urban Development Act of 1965, Public Law 
89-117, approved August 10, 1965, 79 Stat. 451, 477. 

2 Sec. 202(e), Housing and Urban Development Act of 1969, Public Law 91-152, 
approved December 24, 1969. 83 Stat. 379, 386, inserted "and Indian tribes, bands, groups, 
and nations, including Alaska Indians, Aleuts, and Eskimos, of the United States". 

^ Sec. 515, Housing and Urban Development Act of 1968, Public Law 90-448, approved 
Aug. 1. 1968, 82 Stat. 476, 525. added this proviso. 

* Sec. 514, Housing and Urban Development Act of 1968, Public Law 90-448, approved 
Aug. 1, 1968, 82 Stat. 476, 525. added sec. 118. 

^Sec. 202(d), Housing and Urban Development Act of 1969, Public Law 91-152, 
approved December 24, 1969, 83 Stat. 379, 386, inserted "and Indian tribes, bands, groups, 
and nations, including Alaska Indians, Aleuts, and Eskimos, of the United States". 



1142 



URBAN RENEWAL §131 

alleviate harmful conditions in slum and blighted areas which are 
planned for substantial clearance, rehabilitation, or federally assisted 
code enforcement in the near future but in which some immediate pub- 
lic action is needed until clearance, rehabilitation, or code enforcement 
activities can be undertaken. Such grants shall not exceed two-thirds 
(or three-fourths in the case of any city, other municipality, or county 
having a population of fifty thousand or less according to the most 
recent decennial census) of the cost of planning and carrying out pro- 
grams which may include (1) the repair of streets, sidewalks, parks, 
playgrounds, publicly owned utilities, and public buildings to meet 
needs consistent with the short-term continued use of the area prior 
to the undertaking of the contemplated clearance or upgrading activ- 
ities, (2) the improvement of private properties to the extent needed 
to eliminate the most immediate dangers to public health and safety, 
(3) the demolition of structures determined to be structually unsound 
or unfit for human habitation and which constitute a public nuisance 
and serious hazard to the public health and safety, (4) the establish- y 
ment of temporary public playgrounds on vacant land within the area, ' 
and (5) the improvement of garbage and trash collection, street clean- 
ing, and similar activities. The Secretary shall encourage, wherever 
feasible, the employment of otherwise unemployed or underemployed 
residents of the area in carrying out the activities and undertakings 
assisted under this section. The provisions of sections 101(c), 106, and 
114 shall be applicable to activities and undertakings assisted under 
this section to the same extent as if such activities and undertakings 
were being carried out in an urban renewal area as part of an urban 
renewal project. 

Part B — Neighborhood Development Programs ^ 

purpose and authority 

Sec. 131. (a) To facilitate more rapid renewal and development of 
urban areas on an effective scale, and to encourage more efficient and 
flexible utilization of public and private development opportunities 
by local communities in such areas, the Secretary is authorized to make 
fmancial assistance available under this title to local public agencies 
for undertakings and activities which are carried out under a neigh- 
borhood development program approved by him pursuant to this part. 

(b) A neighborhood development program shall consist of urban 
renewal project undertakings and activities in one or more urban 
renewal areas which are planned and carried out on the basis of annual 
increments in accordance with the provisions of this title for planning 
and carrying out urban renewal projects, except as modified by the 
provisions of this part. 

(c) No application for financial assistance in planning and carrying 
out a neighborhood development program shall be approved by the 
Secretary unless — 

(1) the governing body of the locality has, by resolution or 
ordinance, approved the proposed program and the annual incre- 

iSec. 501(b), HouslnfT and Urban Development Act of 1968, Public Law 00-448. ap- 
proved Aug. 1, 1968, 82 Stat 476. 518, added part B. 



1143 

45-705 0-79-19 



§132 URBAN RENEWAL 

ment covered by the application and authorized the filing of the 
application for financial assistance ; and 

(2) the Secretary has concluded that there is the necessary 
capacity to carry out the undertakings and activities included 
under the program. 

FINANCIAL PROVISIONS 

Sec. 132. (a) Upon the approval of a neighborhood development 
program by the Secretary, the cost of any undertakings and activities 
authorized as part of the program shall be financed in accordance with 
the loan, capital grant, and project cost provisions of part A, except 
that — 

(1) net project cost may be calculated on the basis of costs 
incurred and proceeds derived for the account of the program 
during a specified twelve-month period, and may be recalculated 
for succeeding periods of twelve months to reflect additional costs 
and additional proceeds since the date of the last computation or 
recomputation ; and 

(2) if property has been acquired but not disposed of prior 
to the computation or recomputation of net project cost, tem- 
porary loans made or secured under this title to finance under- 
takings or activities included in the program may remain out- 
standing until the property has been disposed of and the proceeds 
thereof together with additional funds becoming available to the 
program, are sufficient to permit repayment of the loans. 

(b) In the event that gross project cost as computed for a specified 
twelve-month period is exceeded, with respect to that period, by the 
sum of (1) the sales price of land or other property sold, and (2) the 
imputed capital value of land or other property leased or retained by 
the local public agency in accordance with the provisions of the urban 
renewal plan, the local public agency shall pay to the Secretary two- 
thirds or the excess (or three-fourths in the case of a program on a 
three-fourths grant basis) , which amount shall be available to the Sec- 
retary for grant payments imder section 103. 

LOCAL GRANTS-IN-AID 

Sec. 133. (a) Except ^ as otherwise provided for in this subsection, 
for the purpose of determining the eligibility of local grants-in-aid in 
connection with undertakings and activities carried out under a neigh- 
borhood development program, the three-year period referred to in 
the first sentence of the second paragraph of section 110(d) shall be 
deemed to be a period of three years prior to the authorization by the 
Secretary of the first contract for financial assistance under the pro- 
gram which includes the urban renewal area which is benefited by the 
public improvement or facility for which credit is claimed; and the 
seven-year period referred to in clause (1) of section 112(b) shall be 
deemed to be a period of seven years prior to the date of authorization 
by the Secretary of the first contract for financial assistance under the 

1 Sec. 203(c), Housing and Urban Development Act of 1969, Public Law 91-152 ap- 
proved December 24, 1969, 83 Stat 379, 386, Inserted this clause and also added the 
second sentence of this sec. 133(a). 



1144 



URBAN RENEWAL §134 

program which includes the urban renewal area which is benefited by 
the expenditures for which credit is claimed. In connection with any 
neighborhood development program for which an application is filed 
not later than the date of the enactment of the Housing and Urban 
Development Act of 1969 and for which no contract for financial assist- 
ance under the program has been authorized by the Secretary, the 
three-year and seven-year periods referred to above shall be extended 
to periods of four and eight years, respectively, prior to authorization 
of (1) the first contract for financial assistance under the program 
which includes the urban renewal area benefited by the public improve- 
ment or facility (or the expenditures) for which credit is claimed, or 
(2) a contract for a loan or capital grant for an urban renewal project 
authorized after the date of the enactment of the Housing and Urban 
Development Act of 1969 in an area which is benefited by the public 
improvement or facility (or the expenditures) for which credit is 
claimed and which was included in the neighborhood development 
program application. 

(b) No portion of the cost of a public improvement or public facil- 
ity (to the extent otherwise eligible) may be included as a local 
grant-in-aid in computing the gross project cost of an approved pro- 
gram for any twelve-month period — 

( 1 ) prior to commencement of construction of the improvement 
or facility, or 

(2) in excess of the amount actually expended or obligated by 
contract. 

(c) The provisions of section 104 with respect to the pooling of 
local grants-in-aid among the various projects undertaken by a local 
public agency shall not be applicable with respect to any excess local 
grants-in-aid resulting from the urban renewal projects contained in 
a neighborhood development program. 

GENERAL PROVISIONS 

Sec. 134. (a) For purposes of this part — 

(1) the workable program requirement in section 101(c) shall 
apply to the authorization, rather than the execution, of any con- 
tract for loans or capital grants ; 

(2) capital grants on a three-fourths basis may only be made 
under section 103 (a) (2) (B) ; 

(3) the relocation requirements specified in section 105 (c) shall 
apply to each annual increment of an approved program ; 

(4) section 106(g) (relating to transient housing) shall apply 
to activities undertaken under approved programs, except that 
the determination as to need for transient housing shall be made 
with respect to any sale or lease of land for construction of such 
housing prior to such sale or lease ; and 

(5) the requirement concerning demolition and removal of 
buildings and improvements stated in clause (A) of the sentence 
following paragraph (10) of section 110(c) shall apply to each 
annual increment of an approved program. 

(b) The approval by the Secretary of financial assistance for one 
or more annual increments of a neighborhood development program 



1145 



§312 URBAN RENEWAL 

shall not be considered as obligating him to provide financial assistance 
for any subsequent annual increments. 

(c) The urban renewal plan referred to in section 110 (b) may cover 
one or more of the urban renewal areas covered by a neighborhood 
development program and such plan may be modified from time to 
time to cover additional urban renewal areas added to the program. 
The Secretary may establish such requirements as he deems appro- 
priate prescribing the scope and content of such plan, taking into con- 
sideration, among other matters, the degree of detail needed in the 
plan to properly and expeditiously carry out the activities and under- 
taking proposed in any annual increment of a neighborhood develop- 
ment program. 

♦ « * « « * * 

Approved July 15, 1949. 



CONTINUATION OF ORIGINAL PROJECTS- 
DEMONSTRATIONS 

EXCERPTS FROM HOUSING ACT OF 1954 

[Public Law 5G0, 83d Cong., 68 Stat. 590, 629; 42 U.S.C. 1450nt and 1452a] 

Sec. 312. Notwithstanding the amendments of this title to title I 
of the Housing Act of 1949, as amended, the Secretary,^ with re- 
spect to any project covered by any Federal aid contract executed, or 
prior to approval granted, by him under said title I before the effective 
date of this Act, upon request of the local public agency, shall continue 
to extend financial assistance for the completion of such project in 
accordance with the provisions of said title I in force immediately 
prior to the effective date of this Act. 

9iC « « « « * * 

Sec. 314.2 Repealed, (a) The Secretary of Housing and Urban De- 
velopment is authorized to make grants, subject to such terms and 
conditions as he shall prescribe, to public bodies (including cities and 
other political subdivisions) and nonprofit organizations, to assist in 
developing, testing, and reporting methods and techniques, and carry- 
ing out demonstrations and other activities for the prevention and 
the elimination of slums and urban blight. In the case of any such 
grant to a nonprofit organization, the Secretary shall require that the 
assisted activities and undertakings are not inconsistent with the pro- 
gram of the local public agency. No such grant shall exceed 90 per 
centum of the cost, as determined or estimated by the Secretary, of the 
assisted activities or undertakings, but such a grant may in addition 
cover the full cost of writing and publishing the reports on such 

1 Sec. 10, Public Law 90-19, approved May 25, 1967, 81 Stat 17, 22, substituted "Sec- 
retary" for "Administrator" throughout the Housing Act of 1^54 In order to make it con- 
form to the Department of Housing and Urban Development Act which placed all the 
functions of the Housing and Home Finance Administrator In the Secretary of Housing 
and Urban Development, 

a Sec. 33 4 repealed effective July 1, 1971, by sec. 503, Housing and Urban Development 
Act of 1970. Public Law 91-609, approved December 31, 1970, 84 Stat. 1770. 1785. How- 
ever, sec. 503, Housing and Urban Development Act of 1970, provides that such repeal 
"shall not affect contracts, commitments, reservations, or other obligations entered into 
.pursuant to such provisions prior to that date" (July 1, 1971). 



1146 



URBAN RENEWAL §314 

activities and undertakings. In administering this section, said Secre- 
tary shall give preference to those activities and undertakings which 
in his judgment can reasonably be expected to (1) contribute most 
significantly to the improvement of methods and techniques for the 
elimination and prevention of slums and blight, and (2) best serve to 
guide renewal programs in other communities. 

(b) The Secretary is further authorized to pay for the cost of (1) 
writing and publishing reports on activities and undertakings financed 
by grants made under this section, as well as reports on similar activi- 
ties and undertakings, not so financed, which are of significant value 
in furthering the purposes of this section, and (2) writing and pub- 
lishing summaries and other informational material on such reports. 

(c) The aggregate amount of grants made under subsection (a) , and 
other costs incurred pursuant to subsection (b), shall not exceed 
$20,000,000 and shall be payable from the grant funds provided under 
and authorized by section 103(b) of the Housing Act of 1949. The 
Secretary may make advance or progress payments on account of any 
contract entered into pursuant to this section, notwithstanding the 
provisions of section 3648 of the Revised Statutes, as amended. 

4i ***** * 

Approved August 2, 1954. 



APPROPRIATION ACT LIMITS ON URBAN RENEWAL 

GRANTS 

EXCERPT FROM INDEPENDENT OFFICES APPROPRIATION ACT, 1966 

[Public Law 89-128, 79 Stat. 520] 

Urban Renewal Administration 

For expenses in connection with grants for urban renewal programs 
as autliorized by title I of the Plousing Act of 1949, as amended, 
$438,675,000, including $331,000,000 as an additional amount for pay- 
ment of grants to liquidate contract authorization incurred prior to 
July 1, 1965, and not to exceed $13,175,000 for administrative expenses 
of making such grants and of making grants authorized by sections 314 
and 701 of the Housing Act of 1954, as amended : Provided, That no 
part of this appropriation shall be used for administrative expenses or 
technical services in connection with contracts for grants or any other 
obligations in excess of the amounts herein provided. 

Approved August 16, 1965. 



EXCERPT FROM SUPPLEMENTAL APPROPRIATION ACT, 1966 

[Public Law 89-309, 79 Stat. 1133, 1135] 

For additional amounts for "Urban renewal administration", to re- 
main available until expended, $675,570,000 for the fiscal year 1966, 
including not to exceed $570,000 for administrative expenses during 



1147 



URBAN RENEWAL 

such year, and $725,000,000 for grants for the fiscal year 1967; Pro- 
vided^ That funds available for administrative expenses in the current 
fiscal year shall be available in connection with gi'ants provided for in 
this paragraph : Provided further^ That not to exceed $1,500,000 of the 
amount provided for each fiscal year in this paragraph for grants 
shall be available for rehabilitation grants pursuant to Sec. 115 of the 
Housing Act of 1949, as amended, and not to exceed $75,000,000 shall 
be available for code enforcement grants pursuant to Sec. 117 of such 
Act. 
Approved October 31, 1965. 



EXCERPT FROM INDEPENDENT OFFICES APPROPRIATION ACT, 1967 
[Public Law 89-555, 80 Stat. 663] 

For administrative expenses for urban renewal programs not ex- 
ceeding commitments heretofore made or provided for in appropria- 
tion acts, including programs authorized by title I of the Housing Act 
of 1949, as amended (42 U.S.C. 1450 et seq.), and sections 314 and 701 
of the Housing Act of 1954, as amended (42 U.S.C. 1452a; 40 U.S.C. 
461) , $15,000,000 : Provided^Thsit the limitation on funds for rehabili- 
tation grants contained in the second proviso under the head "Urban 
renewal administration", in the Supplemental Appropriation Act, 
1966, is increased by $9,000,000 for current fiscal year. 

Approved September 6, 1966. 



EXCERPT PROM SUPPLEMENTAL APPROPRIATION ACT, 1967 
[Public Law 89-697, 80 Stat. 1057] 

For grants for urban renewal, fiscal year 1968, as an additional 
amount for urban renewal programs, as authorized by title I of the 
Housing Act of 1949, as amended (42 U.S.C. 1450 et seq.), and section 
314 of the Housing Act of 1954, as amended (42 U.S.C. 1452a), 
$750,000,000, to remain available until expended : Provided^ That no 
commitments shall be entered into during the fiscal year 1968 for 
grants aggregating more than the total amounts available in that year 
from the amounts authorized for making such commitments through 
June 30, 1967, plus the additional amount appropriated herein. 

Approved October 27, 1966. 



EXCERPT FROM INDEPENDENT OFFICES AND DEPARTMENT OF HOUS- 
ING AND URBAN DEVELOPMENT APPROPRIATION ACT, 1968 

[Public Law 90-121, 81 Stat. 341] 

For grants for urban renewal, fiscal year 1969, as an additional 
amount for urban renewal programs, as authorized by title I of the 
Housing Act of 1949, as amended (42 U.S.C. 1450 et seq.), and section 
314 of the Housing Act of 1954, as amended (42 U.S.C. 1452a), 
$750,000,000, to remain available until expended : Provided^ That no 



1148 



URBAN RENEWAL § 820 and § 2 

part of any appropriation in this Act shall be used for administrative 
expenses in connection with commitments for grants aggregating more 
than the total of amounts available in the current year from the 
amounts authorized for making such commitments through June 30, 
1967, plus the additional amounts appropriated therefor. 
Approved November 3, 1967. 



EXCERPT FROM INDEPENDENT OFFICES AND DEPARTMENT OF HOUS- 
ING AND URBAN DEVELOPMENT APPROPRIATION ACT, 1969 

[Public Law 90-550, 82 Stat. 937] 
Urban Renewal Programs 

For grants for urban renewal, fiscal year 1970, as an additional 
amount for urban renewal programs, as authorized by title I of the 
Housing Act of 1949, as amended (42 U.S.C. 1450 et seq.) and section 
314 of the Housing Act of 1954, as amended (42 U.S.C. 1452a), 
$750,000,000, to remain available until expended: Provided^ That no 
part of any appropriation in this Act shall be used for administrative 
expenses in connection with commitments for grants aggregating more 
than the total of amounts available in the current year from the 
amounts authorized for making such commitments through June 30, 
1968, plus the additional amounts appropriated therefor. 

Approved October 4, 1968. 



EXCERPT FROM HOUSING AND COMMUNITY DEVELOPMENT ACT 

OF 1974 

[Public Law 9^-383, 88 Stat. 633] 

NEIGHBORHOOD DEVELOPMENT PROGRAM 

Sec. 820. Notwithstanding the provisions of section 133(b) of the 
Housing Act of 1949 or of any other law, local expenditures made in 
connection with the Broad and Front Street Garage in Trenton, New 
Jersey, shall, to the extent otherwise eligible, be counted as a local 
grant-in-aid to the first two action years of the Trenton Neighborhood 
Development Program (N.J. A-1) in accordance with the provisions 
of title I of the Housing Act of 1949. 

Approved August 22, 19T4. 



EXCERPT FROM PUBLIC LAW 94-173 

[89 Stat. 1027] 

AX ACT to amend section 2 of the National Housing Act to increase the 
maximum loan amounts for the purchase of mobile homes 



Sec. 2. Notwithstanding the provisions of section 103(a) (2) and 
)) and section 104 of the Housing Act of 1949 or of any other law 



1149 



§902 URBAN RENEWAL 

(1) the maximum project capital grant for Project No. Mass. R-107 
may exceed two-thirds of the net project costs of said project, and 
any such excess shall not be considered in determining the project 
capital ,grant for any other project in the same municipality and 

(2) the maximum amount of local grants-in-aid required in connection 
with Project No. Mass. R-107, under the Contract No. Mass. R-107 
(LG) or amendatory contracts for capital grant for said project, 
shall be one-half of the maximum project capital grant for said project 
authorized under section 7(d) of said contract, dated December 28, 
1965, prior to any amendatory contract, and any local grants-in-aid 
provided in connection with said project in excess of such maximum 
amount or any local grants-in-aid provided in connection with any 
other project in the same municipality shall not decrease the amount 
of the project capital grant for said project under said contract and 
amendatory contracts: Provided^ That any local grants-in-aid pro- 
vided in connection with said project in excess of such maximum 
amount shall not be considered in determining the local grants-in-aid 
required for any other project in the same municipality. 



Approved December 23, 1975. 

EXCERPTS FROM HOUSING AND COMMUNITY DEVELOPMENT 
AMENDMENTS OF 1978 

[PubUc Law 95-557, 92 Stat. 2080] 

STATEMENT OF POLICY AND STUDY ON HOUSING DISPLACEMENT 

Sec. 902. The Congress declares that in the administration of Fed- 
eral housing and community development programs, consistent with 
other program goals and objectives involuntary displacement of per- 
sons from their homes and neighborhoods should be minimized. In 
furtherance of the objective stated in the preceding sentence, the Sec- 
retary of Housing and Urban Development shall conduct a study on 
the nature and extent of such displacement, and, not later than Jan- 
uary 31, 1979, shall report to the Congress on recommendations for the 
formulation of a national policy to minimize involuntary displace- 
ment caused by the implementation of the Department's programs, and 
to alleviate the problems caused by displacement of residents of the 
Nation's cities due to residential and commercial development and 
housing rehabilitation, both publicly and privately financed. In carry- 
ing out such study, the Secretary shall (1) consult with representatives 
of affected public interest groups, government, and the development 
and lending industries; (2) provide data on the nature and scope of 
the displacement problem, both past and projected, and identify steps 
needed to i^njDrove the availability of such data; and (3) report fully 
on the curVbnt legal and regulatory powers and policies of the Depart- 
ment to pt-event or compensate for displacement caused by its own 
programs. 



* * * ♦ 

Approved October 31, 1978. 

1150 



§702 

PUBLIC WORKS PLANNING ADVANCES 

EXCERPTS FROM THE HOUSING ACT OF 1954 

[Public Law 560, 83d Cong^ 68 Stat. 590, 641 40 U.S.C. 4621] 

KESERVE OF PLANNED PUBLIC WORKS 

Sec. 702. (a) In order (1) to encourage municipalities aihS. other 
public agencies ^ and Indian tribes to maintain at all times a current 
and adequate reserve of planned public works the construction of 
which can rapidly be commenced, particularly^ when the national or 
local economic situation makes such action desirable, and (2) to help 
attain maximum economy and efficiency in the planning and construc- 
tion of public works, the Secretary ^ is hereby authorized to make 
advances to public agencies ^ and Indian tribes (not withstanding the 
provisions of section 3648 of the Revised Statutes, as amended) to aid 
in financing the cost of feasibility studies,^ engineering and architec- 
tural surveys, designs, plans, working drawings, specifications, or 
other action preliminary to and in preparation for the construction of 
public works, including ^ in the case of public works to be constructed 
m connection -with the development of a medical center, a general plan 
for the development of such center: Provided^ That the making of 
advances hereunder shall not in any way commit the Congress to 
appropriate funds to assist in financing the construction of any public 
works so planned : And provided further^ That advances out^nding 
to public agencies ^ and Indian tribes in any one State shall at no time 
exceed 12% ^ per centum of the aggregate then authorized to be 
appropriated to the revolving fund established pursuant to subsection 
(e) of this section. 

(b)^ Xo advance shall be made hereunder with respect to any indi- 
vidual project, including a regional or metropolitan or other area-wide 
project, imless (1) it is planned to be constructed within or over a 
reasonable period of time considering the nature of the project, (2) it 

1 Sec. 602(c) (1), Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 
78 Stat. 769. 799. added "and Indian tribes". 

=»Sec. 10. Public Law 90-19, approved May 25, 1976, 81 Stat. 17, 22. substituted "Sec- 
retary" for "Administrator" throughout this section In order to make it conform to 
the Department of Housing and Urban Development Act which placed all the functions 
of tlie Housing and Home Finance Administrator in the Secretary of Housing and Urban 
Development. 

' Sec. 607, Housing and Urban Development Act of 1968, Public Law 90-448, approved 
Aug. 1, 1968, 82 Stat. 476. 534, added "feasibility studies". 

*?!ec. 602(e). Housing Act of 1964. Public Law 88-560. approved September 2, 1964, 
78 Stat. 769. 799. added this clause concerning medical centers. 

•Sec. 502(1), Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 75 Stat. 
149, 175, substituted "12% per centum" for "10 per centum". 

•Sec. 502(2), Housing Act of 1961, Public Law 87-70, approved June 30. 1961. 75 Stat. 

r49, 175, amended the first sentence of subsection (b) to read as set forth In the text 

except that sec. 602(c)(2), Housing Act of 1964 Public Law 88-560, approved September 

2. 1964. 78 Stat 769, 799. Inserted "or Indian tribe" in clause (3) following the words 

the public agency". Immediately prior to amendment by sec. 502 this sentence read: 

"(b) No advance shall be made hereunder with respect to any Individual project unless 
It Is planned to be constructed within a reasonable period of time, unless It conforms to an 
overall State, local, or regional plan approved by a competent State, local, or regional 
authority, and unless the public agency formally contracts with the Federal Governmeirt 
to complete the plan preparation promptly and to repay such advance or part thereof 
when due." 



1151 



§702 PUBLIC WORKS PLANNING ADVANCES 

conforms to an overall State, local, or regional plan approved by a 
competent State, local, or regional authority, and (3) the public agency 
or Indian tribe formally contracts with the Federal Government to 
complete the plan preparation promptly and to repay such advance 
or part thereof when due.^ 

(c) Advances under this section to any public agency or^ Indian 
tribe shall be repaid without interest by such agency or ^ tribe when 
the construction of the public works is undertaken or started : Pro- 
mded^ That in the event repayment is not made promptly such un- 
paid sum shall bear interest at the rate of 4 per centum per annum 
from the date of the Government's demand for repayment to the date 
of payment thereof by the public agency or ^ Indian tribe. 

(d) The Secretary is authorized to prescribe rules and regulations 
to carry out the purpose of this section. 

(e)^ In order to provide moneys for advances in accordance with 
this section, the Secretary is hereby authorized to establish a re- 
volving fund which shall comprise (1) all moneys heretofore or here- 
after appropriated pursuant to this section, together with all repay- 
ments and other receipts heretofore or hereafter received in connection 
with advances made under this section, and (2) all repayments and 
other receipts received after June 30, 1964, and all advances (and 
claims in connection with advances) outstanding as of such date, under 
title V of the War Mobilization and Reconversion Act of 1944 (58 
Stat. 791) and the Act of October 13, 1949 (63 Stat. 841-2). There 
are authorized to be appropriated to such revolving fund, in addition 
to amounts authorized to be appropriated for the purposes of this sec- 
tion prior to the date of the enactment of the Housing Act of 1964,* 
such sums, not to exceed $70,000,000 ^ as may be necessary to carry out 
the purposes of this section. 

iSec. 602(f), Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 
78 Stat. 769, 799. deleted the last sentence of subsec. (b) which read : 

"Subsequent to approval and prior to disbursement of any Federal funds for the purpose 
of advance planning the applicant shall establish a separate planning account into which 
all Federal and applicant funds estimated to be required for plan preparation shall be 
placed." 

« Sec. 602(c)(3), Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 
78 Stat 769, 799, Inserted "or Indian tribe". 

« Sec. 602(c) (8), Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 
78 Stat 769, 799, inserted "or tribe". 

*Sec. e02(e) (4), Housing Act of 1964, Public Lnw 88--560, approved September 2, 1964, 
78 Stat 769, 799 deleted at this pblnt the proviso that read : 

"That if the public agency undertakes to construct only a portion of a planned public 
work it shall repay such proportionate amount of the advances relating to the public work 
9tA the Administrator determines to be equitable : And provided further/^ 

5 Immediately prior to amendment by sec. 602(a), Housing Act of 1964, Public Law 
88-560, approved September 2, 1964, 78 Stat 769, 799, subsec. (e) read as follows: 

"(e> In order to provide moneys for advances in accordance with this section, the Ad- 
ministrator is hereby authorized to establish a revolving fund which shall comprise all 
moneys heretofore or hereafter appropriated pursuant to this section, together with all 
repayments and other receipts in connection with advances made under this section. 
There are hereby authorized to be appropriated to such revolving fund, in addition to the 
amount authorized by thia section as originally enacted, the further amounts of $12,000,000 
which may be made available to the revolving fund on or after July 1, 1956 • $12,000,000 
which may be made available to such fund on or after July 1, 1957 ; $14,000,000 which 
may be made available to such fund on or after July 1, 1958 ; $10,000,000 which may be 
made available to such fund on or after July 1, 1961 ; and such additional sums which 
may be made available from year to year thereafter as may be estimated to be necessary 
to maintain not to exceed a total of $58,000,000 in undisbursed balances In the revolving 
fund and in advances outstanding for plans in preparation or for completed plans with 
respect to projects which, in the determination of the Administrator, can be expected to 
be undertaken within a reasonable period of time." 

•September 2, 1964. 

' Sec. 1104, Housing and Urban Development Act of 1965, Public Law 89-117, approved 
August 10, 1965, 79 Stat 451, 503, substituted "$70,000,000," for "$20,000,000,". 



1152 



PUBLIC WORKS PLANNING ADVANCES §703 

(f) ^ The Secretary is authorized to use during any fiscal year 
not to exceed $100,000 ^ of the moneys in the revolving fund (estab- 
lished under subsection (e) ) to conduct surveys of the status and 
current volume of State and local public works planning and surveys 
of estimated requirements for State and local public works : Provided^ 
That the Secretary, in conducting any such survey, may utilize or act 
through any Federal department or agency with its consent. 

(g) " Notwithstanding any other provision of this section, no ad- 
vance made under this section for the planning of any public works 
project shall be required to be repaid if construction of such project is 
initiated as a result of a grant-in-aid made from an allocation made by 
the President under the Public Works Acceleration Act. 

(h) •* (1) Notwithstanding any other provision of law, if a public 
agency or Indian tribe undertakes to construct only a portion of a 
public work planned with an advance under this section, under title V 
of the War Mobilization and Reconversion Act of 1944, or under the 
Act of October 13, 1949, it shall repay only such proportionate amount 
of the advance relating to the public work as the Secretary deter- 
mines to be equitable. 

(2) The Secretary is authorized to terminate, upon such terms 
and conditions as he shall deem equitable, all or a portion of the 
liability for repayment of any advance made under this section, title 
V of the War Mobilization and Reconversion Act of 1944, or the Act 
of October 13, 1949. Whenever the Secretary determines that there 
is no reasonable likelihood that the public work, or a portion of the 
public work, planned with such advance will be constructed, he may 
terminate the agreement for the advance. Such determination shall be 
conclusive and shall be based on standards prescribed by regulations 
to be issued by the Secretary. 

DEFINITIONS 

Sec. 703. As used in this title, (1) the term "State" shall mean any 
State, the District of Columbia, the Commonwealth of Puerto Rico, 
any territory or possession of the United States, and the Trust Terri- 
tory of the Pacific Islands; ^ (2) the term "Secretary" shall mean the 
Secretary of Housing and Urban Development; (3) the term "public 
w^oiks" shall include any public w^orks other than housing; and (4) 
the term "public agency" or "public agencies" shall mean any State, 
as herein defined, or any public agency or political subdivision therein 
******* 

Approved August 2, 1954. 



1 Sec. 801. Housing Act of 1959. Public Law S6-372, approved September 23, 1959, 73 
Stat. 654. G86. added this subsection. 

-Sec. 002(d). Housing Act of 1964. Public Law 88-560, approved September 2, 1964, 
78 Stat. 760. 799. substituted "$100,000" for ".$50,000". 

3 Sec. 6. Public Works Acceleration Act. Public Law 87-658. approved September 14, 
1962. 76 Stat. 541. 544. added this subsection. 

- * See. 602(b), Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 
78 Stat. 769. 799, added this subsection. 

5 Sec. 401(c) of Housing and Community Development Act of 1974. Public Law 93-383, 
88 Stat. 633. approved August 22, 1974, added the words ", and the Trust Territory of 
the Pacific Islands". 



1153 



§1112 PUBLIC WORKS PLANNING ADVANCES 

EXCERPT FROM HOUSING AND URBAN DEVELOPMENT ACT OF 1965 

[Public Law 8»-117, 79 Stat. 451, 509; 40 U.S.C. 462nt.] 
r RiaPATMENT OP CERTAIN PLANNING GRANTS 

Sec. 1112. Notwithstanding any other provision of law, no advance 
made under section 501 of Public Law 458, Seventy-eighth Congress ; 
Public Law 352, Eighty-first Congress; or section 702, Housing Act 
of 1954, Public Law 560, Eighty-third Congress, for the planning of 
any public works project shall be required to be repaid if construc- 
tion of such project has been heretofore or is hereafter initiated as 
a result of a grant-in-aid made from an allocation made by the Presi- 
dent under the Public Works Acceleration Act. 

* ♦ ♦ ♦ * * • 

Approved August 10, 1965. JT 



1154 



§201 

PUBLIC FACILITIES LOANS 

EXCERPTS FROM HOUSING AMENDMENTS OF 1955 

[Public Law 345, 84th Congress, 69 Stat. 635, 642; 42 U.S.C. 1491] 

TITLE II— PUBLIC FACILITY LOANS 

DECLARATION OF POLICY 

Sec. 201. It has been the policy of the Congress to assist wherever 
possible the States and their political subdivisions, and ^ Indian tribes 
to provide the services and facilities essential to the health and wel- 
fare of the people of the United States. 

The Congress finds that in many instances municipalities, or other 
political subdivisions of States, and ^ Indian tribes, which seek to 
provide essential public works or facilities (including - mass trans- 
portation facilities and equipment), are unable to raise the necessary 
funds at reasonable interest rates. 

It is the purpose of this title (subject to the limitations contained 
herein) to authorize the extension of credit to assist in the provision 
of certain essential public works or facilities by States, municipalities, 
or other political subdivisions of States, and ^ Indian tribes, where 
such credit is not otherwise available on reasonable terms and con- 
ditions. 

FEDERAL LOANS 

Sec. 202. (a) The Secretary of Housing and Urban Development ^ is 
authorized * ( 1 ) to purchase the securities and obligations of, or make 
Joans to, municipalities and other political subdivisions and instru- 
mentalities of one or more States (including public agencies and in- 
strumentalities of one or more municipalities or other political sub- 
division of one or more States) , and ^ Indian tribes to finance spe- 



1 Sec. 1 of Public Law 87-808, approved October 15, 1962, 76 Stat. 920, Inserted "and 
Indian tribes". 

3 Sec. 501(a)(1), Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 75 
Stat. 149, 173, inserted this parenthetical phrase. 

* Sec. 12 Public Law 90-19, approved May 25, 1967, 81 Stat 17, 23 substituted "Secre- 
tary of Housing and Urban Development" and "Secretary" for "Housing and Home 
Finance Administrator" and "Administrator" throughout title II in order to make it 
conform to the Department of Housing and Urban Development Act, which placed all the 
functions of the Housing and Home Finance Administrator in the Secretary of Housing 
and Urban Development. 

See Reorganization Plan No. 2 of 1968. which transferred functions In this Act related 
to mass transportation to the Secretary of Transportation. 

* Sec. 601(a), Housing Act of 1964, Public Law 88-560, approved Sept. 2, 1964, 78 
Stat. 769, 798, amended the first sentence of subsec. 202(a) to make clear that instru- 
mentalities of one or more States, and instrumentalities of municipalities or other political 
subdivisions in one or more States are eligible for public facility loans. Immediately prior 
to amendment by sec. 601(a) of the Housing Act of 1964 that part of the first sentence 
from the beginning down to the e^.' of clause (1^ read as follows : 

"The Housing and Home Finance Administrator is authorized (1) to purchase the 
securities and obligations of. or make loans to. municipalities and other political sub- 
divisions and instrumentalities of States (including public agencies and instrumentalities 
of one or more municipalities or other political subdivisions in the same State), and Indian 
tribes to finance specific projects for public works or facilities under State, municipal, or 
other applicable law. and". 

»Sec. 2(a) of Public Law 87-808. approved Oct. 15, 1962, 76 Stat. 920, inserted "and 
Indian tribes". 



1155 



§202 PUBLIC FACILITIES LOANS 

cific projects for public works or facilities under State, municipal, or 
other applicable law, and (2) to purchase the securities and obliga- 
tions of, or make loans to, States, municipalities and other political 
subdivisions of States, public agencies and instrumentalities of one 
or more States, municipalities and political subdivisions of States, 
and public corporations, boards, and commissions established under 
the laws of any State, to finance the acquisition, construction, recon- 
struction, and improvement of facilities and equipment for use, by- 
operation or lease or otherwise, in mass transportation service in 
urban areas, and for use in coordinating highway, bus, surface-rail, 
underground, parking and other transportation facilities in such 
areas. The facilities and equipment referred to in clause (2) may in- 
clude land, but not public highways, and any other real or personal 
property needed for an economic, efficient, and coordinated mass 
transportation system. No such purchase or loan shall be made for 
payment of ordinary governmental or nonproject operating expenses, 
(b) The powers granted in subsection (a) of this section shall be 
subject to the following restrictions and limitations : 

(1) No financial assistance shall be extended under this section un- 
less the financial assistance applied for is not otherwise available on 
reasonable terms, and all securities and obligations purchased and all 
loans made imder this section shall be of such sound value or so secured 
as reasonably to assure retirement or repayment, and such loans may 
be made either directly or in cooperation with banks or other lending 
institutions through agreements to participate or by the purchase of 
participations or otherwise. 

(2) No securities or obligations shall be purchased, and no loans 
shall be made, including renewals or extensions thereof, which have 
maturity dates in excess of forty years. Subject ^ to such maximum 
maturity, the Secretary in his discretion may provide for the post- 
ponement of the payment of interest on not more than 50 per centum 
of any financial assistance extended to an applicant under this section 
for a period up to ten years where (A) such assistance does not exceed 
50 per centum of the development cost of the project involved, and (B) 
it is determined by the Secretary that such applicant will experi- 
ence above-average population growth and the project would contrib- 
ute to orderly community development, economy, and efficiency; and 
any amounts so postponed shall be payable with interest in annual 
installments during the remaining maturity of such assistance. 

(3)2 Financial assistance extended under this section shall bear in- 
terest at a rate determined by the Secretary which shall be not more 
than the higher of (A) 3 per centum per annum, or (B) the total of 
one-half of 1 per centum per annum added to the rate of interest paid 
by the Secretary on funds obtained from the Secretary of the Treas- 
ury as provided in section 203 ( a ) . 

(4)3 No financial assistance shall be extended under clause (1) of 
subsection (a) of this section (A) to any municipality or other po- 
» 

»Tbis sentence added by sec. 501(c), Housing Act of 1961, Public Law 87-70, approved 
June 30. 1961, 7o Stat. 149. 174. 

-Added by sec. 501(d)(1), Housing Act of 1961, Public Law 87-70 approved June 30, 
1961. 75 Stat. 149. 174. 

3 Added by sec. 501(e), Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 
75 Stat. 149, 174. 



1156 



ii 



PUBLIC FACILITIES LOANS §202 

litical subdivision having a population of fifty thousand or more ^ (one 
liundred fifty thousand or more in the case of a community situated in 
an area designated as a redevelopment area under the Area Redevel- 
opment Act or any Act supplementary thereto) according to the most 
lecent decennial census, or; (B)^ to any puolic agency or instiTi- 
mentality serving one or more municipalities, political subdivisions or 
unincorporated areas in one or more States, unless each municipality, 
political subdivision, or unincorporated area to be served by the specific 
public work or facility for which assistance is sought under this sec- 
tion has a population less than the applicable figure under clause (A) 
according to such census. This ^ paragraph shall not apply to any 
financial assistance to be extended under subsection (a) of this section 
for the purpose of financing any project for public works or facilities 
( i ) in a community in or near which is located a research or develop- 
ment installation of the National Aeronautics and Space Administra- 
tion, or (ii) to be initiated or accelerated as the result of a grant-in-aid 
f lom an allocation made by the President under section 9 * of the Pub- 
lic Works Acceleration Act, or (iii) to be provided in connection with 
the establishment of a new community approved under section 1004 of 
the National Housing Act or under part B of the Urban Growth and 
New Community Development Act of 1970. 

(c) In the processing of applications for financial assistance under 
clause (1) of ^ subsection (a) of this section the Secretary shall give 
priority to applications of smaller municipalities for assistance in the 
construction of basic public works (including works for the storage, 
treatment, purification, or distribution of water; sewage, sewage treat- 
ment, and sewer facilities; and gas distribution systems) for which 
there is an urgent and vital public need. As used in this section, a 
''smaller municipality" means an incorporated or unincorporated town, 
or other political subdivision of a State, which had a population of less 
than ten thousand inhabitants at the time of the last Federal census, 
or ^ an Indian tribe. Notwithstanding ^ any other provision of this title 
the Secretary may extend financial assistance, as otherwise authorized 
by clause (1) of subsection (a) of this section, to any private nonprofit 
corporation to finance the construction of works for the storage, treat- 
( 

'Sec. 1107(b)(1), IIousinR and Urban Development Act of 1965, Public Law 89-117, 
approved Anpust 10. 1965, 79 Stat. 451, 503, substituted this parenthetical phrase for the 
following:: "(one hundred fifty thousand or more In the case of a community situated in an 
area designated as a redevelopment area under section 5 of the Area Redevelopment Act or 
in the case of a commanity in or near which is located a research or development installation 
of the National Aeronautics and Space Administration)". 

The Area Redevelopment Act was superseded by the Public Works and Economic Develop- 
ment Act of 1965, Public Law 89-136, 79 Stat 552, 42 U.S.C. 3121, excerpts from which 
apppar infra. 

- Sec. 601(b) (2). Housing Act of 1964, Public Law 88-560, approved September 2. 1964, 
78 Stat. 769. 789, substituted this clause for the following : "to any public agency or instru- 
mentality of one or more municipalities or other political subdivisions having a population 
(or an aggregate population) equal to or exceeding that figure according to such census." 

2 This sentence, except clauses (i) and (iii), added bv sec. 5(a). Public Works Accelera- 
tion Act. Public Law 87-6.'j8, approved September 14. 1962, 76 Stat. 541. 543, Clause (i) 
was inserted by sec. 1107(b) (2), Housing and Urban Development Act of 1965, Public Law 
89-117. approved August 10. 1965, 79 Stat. 451, 503. Clause (ill) was inserted by sec. 407, 
Demonstration Cities and Metropolitan Development Act of 1966, Public Law 89-754, 
approved November 3, 1966, 80 Stat. 1255. 1273. 

* So designated in the enrolled enactment. Reference is to "section 3" rather than 
"section i)." 

5 Sec. 501(f). Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 75 Stat. 
149. 174. substituted "clause (1) of subsection (a) of this section" for "this section," 

"Sec. 2(b) of Public Law 87-808, approved October 15, 1962. 76 Stat. 920, inserted "or 
an Indian tribe." 

'This sntence added by sec. 1107(a), Housing and Urban Development Act of 1965, 
Public Law 89-117. approved August 10. 1965. 79 Stat. 451, 503. 



1157 



§203 



PUBLIC FACILrnES LOANS 



I 



ment, purification, or distribution of water or the construction of sew- 
age, sewage treatment, and sewer facilities, if such works or facilities 
are needed to serve a smaller mimicipality or rural area, and there is 
no existing public body able to construct and operate such works or 
facilities. 

(d)^ No loans may be made for transportation facilities or equip- 
ment, pursuant to clause (2) of subsection (a) of this section, unless 
the Secretary determines (1) that there is being actively developed (or 
has been developed) for the urban or other metropolitan area served 
by the applicant a program, meeting criteria established by him, for 
the development of a comprehensive and coordinated mass transporta- 
tion system; (2) that the proposed facilities or equipment can reason- 
ably be expected to be required for such a system; and (3) if such pro- 
gram has not been completed, that there is an urgent need for the pro- 
vision of the facilities or equipment to be commenced prior to the time 
that the program could reasonably be expected to be completed : Pro- 
vided^ That no such loan shall be made, except under a prior commit- 
ment, after June 30, 1963.2 

(e) The ^ Secretary is authorized to make a grant-in-aid from any 
allocation made for such purpose by the President under section 9 '^ of 
the Public Works Acceleration Act to any public entity described in 
clause (1) of subsection (a) of this section of not to exceed 50 per 
centum of the cost of construction of any project for public works or 
facilities, if such project would be eligible (without regard to the re- 
strictions and limitations of subsections (b) and (c) of this section) 
for financial assistance under clause (1) of subsection (a) of this sec- 
tion in accordance with the rules and regulations of the Secretary (as 
in effect on the date of enactment of this subsection) relating to the 
types of public works and facilities to which such assistance may be 
extended. 

(f)^ The restrictions and limitations set forth in subsection (c) of 
this section shall not apply to assistance to mimicipalities, other politi- 
cal subdivisions and instrumentalities of one or more States, and 
Indian tribes, for specific projects for cultural centers, including but 
not limited to, museums, art centers and galleries, and theaters and 
other physical facilities for the performing arts, which would be of 
cultural, educational, and information value to the communities and 
areas where the centers would be located. 

FINANCING 

Sec. 203. (a) In order to finance activities under this title, the 
Secretan'^ is authorized and empowered to issue to the Secretary 
of the Treasury, from time to time and to have outstanding at any 
one time, notes ^ and other obligations in an amount not to exceed 

1 Added by sec. 501(g), Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 
75 Stat. 149. 174. 

2 Public Law 87-809. approved October 15, 1962, 76 Stat. 920, substituted "June 30, 
1963" for "December 31. 1962." 

3 Added by sec. 5(b), Public Works Acceleration Act, Public Law 87-658, approved 
September 14, 1962, 76 Stat. 541. 543. ^^ 

4 So designated in the enrolled enactment. Reference is to "section 3" rather than 
"section 9." 

5 Added by sec. 1009, Demonstration Cities and Metropolitan Development Act of 1966 
Public Law 89-754. approved November 3, 1966, 80 Stat. 1255, 1286. 

6 Immediately prior to amendment by sec. 501(h). Housing Act of 1961. Public Law 
87-70, approved June 30, 1961 75 Stat 149, 175, the remainder of this sentence read: 
••in an amount not exceeding $150,000,000. notes and other obligations." 



1158 



PUBLIC FACILITIES LOANS §203 

$650,000,000 : Provided, That, of the funds obtained through the issu- 
ance of such notes and other obligations, $600,000,000 shall be avail- 
able only for purchases and loans pursuant to clause (1) of section 
202(a) of this title and $50,000,000 shall be available only for pur- 
chases and loans pursuant to clause (2) of such section. Such obli- 
gations shall be in such forms and denominations, have such maturities 
and be subject to such terms and conditions as may be prescribed by the 
Secretary, with the approval of the Secretary of the Treasury. 
Such ^ notes or other obligations shall bear interest at a rate deter- 
mined by the Secretary of the Treasury which shall be not more than 
the higher of (1) 2i/^ per centum per annum, or (2) the average annual 
interest rate on all interest-bearing obligations of the United States 
then forming a part of the public debt as computed at the end of the 
fiscal year next preceding the issuance by the Secretary and ad- 
justed to the nearest one-eighth of 1 per centum. 

The Secretary of the Treasury is authorized and directed to purchase 
any notes and other obligations of the Secretary to be issued here- 
under and for such purpose the Secretary of the Treasury is authorized 
to use as a public debt transaction the proceeds from the sale of any 
securities issued under the Second Liberty Bond Act, as amended, and 
the purposes for which securities may be issued under such Act, as 
amended, are extended to include any purchases of such notes and 
obligations. The Secretary of the Treasury may at any time sell any 
of the notes or other obligations acquired by him under this section. 
All redemptions, purchases, and sales by the Secretary of the Treasury 
of such notes or other obligations shall be treated as public debt trans- 
actions of the United States. 

(b) Funds borrowed under this section and any proceeds shall con- 
stitute a revolving fund which may be used by the Secretary in the 
exercise of his functions imder this title. 

GENERAL PROVISIONS 

Sec. 204. In the performance of, and with respect to, the functions, 
powers, and duties vested in him by this title the Secretary shall 
(in addition to any authority otherwise vested in him) have the func- 
tions, powers, and duties set forth in section 402, except subsection (c) 
(2), of the Housing Act of 1950. Funds obtained or held by the Sec- 
retary in connection with the performance of his functions under this 
title shall be available for the administrative expenses of the Secretary 
in connection with the performance of such functions. 



Sec. 206.2 As used in this title, the term "States" means the several 
States, the District of Columbia, the Commonwealth of Puerto Rico, 

\ 

1 Sec. 501(d)(2). Housing Act of 1961, Public Law 87-70. approved June 30, 1961, 75 
Stat. 149, 174, amended the third sentence of subsec. 203(a) to read as set forth in the 
text. Immediately prior to amendment by sec. 501 (d) (2) this sentence read : 

"Such notes or other obligations shall bear interest at a rate determined by the Secre- 
tary of the Treasury, taking into consideration the current average rate on outstanding 
marketable obligntions of the United States of comparable maturities as of the last day 
of the month preceding the issuance of such notes or other obligations." 

^ Sec. 206 was added by sec. 603 of the Housing Act of 1956, Public Law 1020. 84th 
Congress, approved August 7. 1956, 70 Stat. 1091, 1114, except for the reference to the 
Trust Territory of the Pacific Islands which was inserted by sec. 403(b), Housing and 
Urban Development Act of 1969, Public Law 91-152, approved December 24, 1969, 83 
Stat. 379, 395. 



1159 

145-705 0-79-20 



207 



PUBLIC FACILITIES LOANS 



the Trust Territory of the Pacific Islands, and the territories and 
possessions of the United States. 

Sec. 207.^ The Secretary is authorized to establish technical ad- 
visory sei:vices to assist municipalities and other political subdivi- 
sions and instrumentalities, and^ Indian tribes, in the budgeting, 
financing, planning, and construction of community facilities. There 
are hereby authorized to be appropriated such sums as may be neces- 
sary, together with any fees that may be charged, to cover the cost of 
such services. 



Approved August 11, 1955. 



^Sec. 207 was added by sec. 501 (i) of the Housing Act of 1961, Public Law 87-70, 
approved June 30, 1961, 75 Stat. 149, 175. 

- Sec. 3 of Public Law 87-808, approved October 15, 1962, 76 Stat. 920. inserted ", and 
Indian tribes". 



1160 



§701 

EXCERPTS FROM HOUSING AND URBAN DEVELOPMENT ACT OF 1965 

[Public Law 89-117, 79 Stat. 451, 489; 42 U.S.C. 3101] 

TITLE YII— COlSaHINITY FACILITIES 

PURPOSE 

Sec. 701. The purpose of this title is to assist and encourage the 
communities of the Nation fully to meet the needs of their citizens 
by making it possible, with Federal grant assistance, for their govern- 
mental bodies (1 ) to construct adequate basic water and sewer facilities 
needed to promote the efficient and orderly growth and development of 
our communities, (2) to construct neighborhood facilities needed to 
enable them to carry on programs of necessary social services, and 
(3) to acquire, in a planned and orderly fashion, land to be utilized 
in the future for public purposes.^ 

GRANTS FOR BASIC WATER AXD SEWER FACILrriES 

Sec. 702. (a) The Secretary of Housing and Urban Development- 
(hereinafter in this title referred to as the "Secretary") is author- 
ized to make grants to local public bodies and agencies to finance 
specific projects for basic public water facilities (including works for 
the storage, treatment, purification, and distribution of water), and 
for basic public sewer facilities (other than "treatment works" as 
defined in the Federal Water Pollution Control Act^): Provided^ 
That no grant shall be made under this section for any sewer facilities 
unless the Secretary of Health. Education, and Welfare ^ certifies to 
the Secretary that any waste material carried by such facilities will be 
adequately treated before it is discharged into any public waterway 
so as to meet applicable Federal, State, interstate, or local water 
quality standards. 

(b) The amount of any grant made under the authority of this 
section shall not exceed 50 per centum of the development cost of the 
project : Provided^ That in the case of a community having a popula- 
tion of less than ten thousand, according to the most recent decennial 
census, which is situated within a metropolitan area, the Secretary 

1 Sec. 603, Housing and Urban Development Act of 1968, Public Law 90-448, approved 
Aug. 1, 1968. 82 Stat. 476. 533, substituted "In the future for public purposes" for "in 
connection with the future construction of public works and facilities". 

3 Sec. 22, I'ublic Law 90-19, approved May 25. 1967. SI Stat. 17, 26, substituted "Secre- 
tary of Housing and Urban Development" and "Secretary" for "Housing and Home Finance 
Administrator" and "Administrator" throughout this title in order to make it conform to 
the Department of Housing and Urban Development Act which placed all the functions of 
the Housing and Home Finance Administrator in the Secretary of Housing and Urban 
Development. 

3 "Treatment works" is defined in the Federal Water Pollution Control Act as "the 
vnrious devices used in the treatment of sewage or industrial wastes of a liquid nature, 
including the necessary Intercepting sewers, outfall sewers, pumping, power, and other 
equipment, and their appurtenances, and Includes anv extensions, improvements, remodel- 
inff. additions, and alterations thereof" (33 U.S.C. 466j). 

* The functions of the Secretary of Health, Education, and Welfare under sec. 702(a) 
were transferred to the Secretary of the Interior by Reorganization Plan No. 2 of 1966, 
effective May 10, 1966. 



1161 



§703 PUBLIC FACILITIES GRANTS 

may increase the amount of a grant for a basic public water or ^ sewer 
facility assisted imder this section to not more than 90 per centum of 
the development cost of such facility, if the commimity is unable to 
finance the construction of such facility without the increased grant 
authorized imder this subsection, and it in such community (1) there 
does not exist a public or other adequate water or^ sewer lacility 
which serves a substantial portion of the inhabitants of the com- 
munity, and (2) the rate of unemployment is, and has been continu- 
ously for the preceding calendar year, 100 per centum above the 
national average: And provided further^ That the limitations and 
restrictions contained in subsection (c) of this section shall not be 
applicable to any community applying for an increased grant under 
this subsection. 

(c) No grant shall be made under this section in connection with 
any project unless the Secretary determines that the project is neces- 
sary to provide adequate water or sewer facilities for, and will con- 
tribute to the improvement of the health or living standards of, the 
people in the community to be served, and that the project is (1) 
designed so that an adequate capacity will be available to serve the 
reasonably foreseeable growth needs of the area; (2) consistent with 
a program meeting criteria, established by the Secretary, for a imified 
or officially coordinated area wide water or sewer facilities system as 
part of the comprehensively planned development of the area, except 
that prior to June 30, 1974 ^ grants may, in the discretion of the Sec- 
retary, be made under this section when such a program for an area- 
wide water and sewer facilities system is under active preparation, 
although not yet completed, if the facility or facilities for which as- 
sistance is sought can reasonably be expected to be required as a part 
of such program, and there is urgent need for the facility or facilities; 
and (3) necessary to orderly community development. 

(d)^ In the administration of this section, the Secretary shall re- 
quire that, to the greatest extent practicable, new job opportunities 
be provided for unemployed or underemployed persons in connection 
with projects the financing of which is assisted under this section. 

GRANTS FOR NEIGHBORHOOD FACILITIES 

Sec. 703. (a) In accordance with the provisions of this section, the 
Secretary is authorized to make grants to any local public body or 
agency to assist in financing specific projects for neighborhood facili- 
ties. Any such project may be undertaken by such body or agency 

1 Sec. 604(b), Housing and Urban Development Act of 1968, Public Law 90-448, approved 
Aug. 1, 1968. 82 Stat. 476. 534, added "water or". 

2 Sec. 6 of Public Law 92-213, approved December 22, 1971, 85 Stat. 775, 776, substi- 
tuted "June 30. 1972" for "October 1, 1971", and sec. 7 of Public Law 92-335, approved 
July 1, 1972, 86 Stat. 405. substituted "September 30. 1972" for "June 30, 1972". Previous 
to this extension. Section 3(c), Emergency Community Facilities Act of 1970, Public Law 
91-431, effective without the President's signature, October 6, 1970, 84 Stat. 886. substi- 
tuted ''October 1, 1971" for "October 1, 1970"; sec. 604(a). Housing and Urban Develop- 
ment Act of 1968, Public Law 90-448, approved August 1, 1968, 82 Stat 476, 534, substi- 
tuted "October 1, 1969" for "July 1, 1968" and sec. 305(a). Housing and Urban Develop- 
ment Act of 1969, Public Lrw 91-152, approved December 24, 1969, 83 Stat. 379, 391, 
substituted "October 1, 1970" for "October 1, 1969": Sec. 9 of Public Law 93-117, 87 
Stat. 421, approved October 2, 1973, substituted "June 30, 1974", for "September 30. 1972". 

« Sec. 604(c), Housing and Urban Development Act of 1968, Public Law 90-448, ap- 
proved Aug. 1, 1968. 82 Stat. 476, 534, added subsection (d). 



1162 



PUBLIC FACILITIES GBANTS §704 

directly or through a nonprofit organization by it: Provided^ That 
no grant shall be provided under this section for any project to be 
undertaken through a nonprofit organization unless the Secretary de- 
termines (1) that such organization has or will have the legal, finan- 
cial, and technical capacity to carry out the project, and (2) that the 
public body or agency to which the grant is made will have satisfactory 
continuing control over the use of the proposed facilities. 

(b) The amount of any grant made under the authority of this sec- 
tion shall not exceed 66% per centum of the development cost of the 
project for which the grant is made (or 75 per centum of such cost in 
the case of a project located in an area which at the time the grant is 
made is designated as a redevelopment area under the Area Redevelop- 
ment Act or any Act supplementary thereto) .^ 

(c) No grant shall be made under this section for any project unless 
the Secretary determines that the project will provide a neighborhood 
facility which is (1) necessary for carrying out a program of health, 
recreational, social, or similar community service (including a com- 
munity action program approved under title II of the Economic Op- 
portunity Act of 1964)2 in the area, (2) consistent with comprehensive 
planning for the development of the community, and (3) so located as 
to be available for use by a significant portion (or number in the case 
of large urban places) of the area's low- or moderate-income residents. 

(d) For a period of twenty years after a grant has been made under 
this section for a neighborhood facility, such facility shall not, without 
the approval of the Secretary, be converted to uses other than those 
proposed by the applicant in its application for a gi-ant. The Secretary 
shall not approve any conversion in the use of such a neighborhood 
facility during such twenty-year period unless he finds that such con- 
version is in accordance with the then applicable program of health, 
recreational, social, or similar community services in the area and 
consistent with comprehensive planning for the development of the 
community in which the facility is located. In approving any such 
conversion, the Secretary may impose such additional conditions and 
requirements as he deems necessary. 

(e) The Secretary shall give priority to applications for projects 
designed primarily to benefit members of low-income families or other- 
wise substantially further the objectives of a community action pro- 
gram approved under title II of the Economic Opportunity Act of 
1964. 

ADVANCE ACQUISITION OF LAND 

Sec. 704. (a) In order to encourage and assist the timely acquisition 
of land planned to be utilized in the future ^ for public purposes, the 
Secretary is authorized to make grants to States * and local public 
bodies and agencies to assist in financing the acquisition of a fee simple 
estate or other interest in such land. 



"^ See Public Works and Economic Development Act of 1965. 

2 42 U.S.C. 2781. 

» Sec. 603. Housing and Urban Development Act of 1968, Public Law 90-488, approved 
Aug. 1. 1968, 82 Stat. 476, 533, substituted "In the future for public purposes" for "in 
connection with the future construction of public works or facilities". 

* Sec. 003, Housing and Urban Development Act of 1968, Public Law 90-448, approved 
Aug. 1, 1968, 82 Stat. 476, 533, added "to States". 



1163 



1704 PUBLIC TACIUTIE& G9,^JSn^ 

(b) ^ The amount of any grant made under this section shall not 
exceed the aggregate amount of reasonable interest charges on the 
loans or other financial obligations incurred to finance the acquisition 
of such land for a period not in excess of the lesser of (1) five years 
from the date of acquisition of such land or (2) the period of time be- 
tween the date on which the land was acquired and the date its use 
began lur the purpose for which it was acquired : Provided^ That where 
all or any portion of the cost of such land is not financed through bor- 
rowings, the amount of the grant shall be computed on the basis of the 
aggregate amount of reasonable interest charges that the Secretary 
determines would have been required. 

(c) 2 No grant shall be made under this section unless the Secretary 
determines that the land will be utilized for a public purpose within a 
reasonable period of time and that such utilization will contribute to 
economy, efficiency, and the comprehensively planned development of 
the area. The Secretary shall in all cases require that land acquired 
with the a^istance of a grant under this section be utilized for a public 
purpose within five years after the date on which a contract to make 
such grant is entered into, unless the Secretary (1) determines that due 
to unusual circumstances a longer period of time is necessary and in 
the public interest, and (2) reports such determination promptly to the 
Committees on Banking and Currency of the Senate and House of 
Representatives. 

(d) ^ No land acquired with assistance under this section shall, with- 
out approval of the Secretary, be diverted from the purpose originally 
approved. The Secretary shall approve no such diversion unless he 
finds that the diversion is in accord with the then applicable compre-. 
hensive plan for the area. In cases of a diversion of land to other than 
a public purpose, the Secretary may require repayment of the grant, or 
substitution of land of approximately equal fair market value, which- 
ever he deems appropriate. An interim use of the land for a public or 
private purpose in accordance with standards prescribed by the Secre- 
tary, or approved by him, shall not constitute a diversion within the 
meaning oi this subsection. 

(e)* Notwithstanding any other provision of law, no project for 
which land is acquired with assistance under this section shall, solely 
> 

1 Prior to amendment by see. 603. Housing and Urban Development Act of 1968, Public 
Law 90-448. approved Aug. 1, lfi68, 82 Stat. 476, 533. this subsection read as f oUotvs : 
♦'The amount of any grant made under the authority of this section shall not exceed the 
aggregate amount of reasonable Interest charges on the loan or other financial obligation 
Incurred to finance the acquisition of such land for a period not exceeding the lesser of 
(1) five years from the date such loan was made cr such financial obligation was incurred, 
or (2) the period of time between the date such loan was made or such financial obligation 
was incurred ajid the date construction is begun on the public work or facility for which the 
land acquired was planned to be utilized." 

» Prior to amendment by sec, 603, Housing arid Urban Development Act of 19G8. Public 
Daw 90-448, approved Aug. 1, 1968, 82 Stat. 476, 533, subsection (c) read as follows : ''No 
grant shall be made under this section for any project for the acquisition of land unless 
the Secretary determines that the public work or facility for which such land is to be util- 
ized is planned to be constructed or initiated within a reasonable period of time (not to 
exceed five years after a contract to make such grant is entered into) and that construc- 
tion Of such public work or facility will contribute to economy, efficiency, and the com- 
prehensively planned development of the area.*' 

* Prior to amendment by sec. 603, Housing and Urban Development Act of 1968, Public 
Law 90-448, approved Aug. 1, 1968, 82 Stat. 476, 533. subsection (d) read as follows: "As 
a condition to providing assistance under this section, the Secretary may, under terms and 
conditions prescribed by him, require an applicant to agree to repay such assistance, if <1) 
the land purchased with such assistance is not utilized within five years after the agree- 
ment is entered into in connection with the construction of the public work or facility for 
which such land was acquirea, or (2) such land is diverted to other uses." See also' sub- 
section (c). 

* Sec. 603, Housing and Urban Development Act of 1968, Public Law 90-448, approved 
Aug. 1, 1968, 82 Stat. 476, 533. added subsection (e). 



1164 



PUBLIC FACILITIES GRANTS §705 

as a result of such advance acquisition, be considered ineligible for the 
purpose of any other Federal loan or grant program, and the amount 
of the purchase price paid for the land by the recipient of a grant 
under this section may be considered an eligible cost for the purpose 
of such other Federal loan or grant program. 

GENERAL PROVISIONS 

Sec. 705. (a) In the performance of, and with respect to, the func- 
tions, powers, and duties vested in him by this title, the Secretary 
shall (m addition to any authority otherwise vested in him) have the 
functions, powers, and duties set forth in section 402, except sub- 
sections (a), (c) (2), and (f) of the Housing Act of 1950. 

(b) The Secretary is authorized, notwithstanding the provisions 
of section 3648 of the Revised Statutes, to make advance or progress 
payments on account of any grant made pursuant to this title. No 
part of any grant authorized to be made by the provisions of this 
title shall be used for the payment of ordinary governmental operating 
expenses. 

DEFINITIONS 

Sec. 706. As used in this title — 

(a) The term "State" means the several States, the District of 
Columbia, the Commonwealth of Puerto Rico, and the territories and 
possessions of the United States. 

(b) The term "local public bodies and agencies" includes public 
corporate bodies or political subdivisions; public agencies or instru- 
mentalities of one or more States, municipalities, or political subdivi- 
sions of one or more States (including public agencies and instru- 
mentalities of one or more municipalities or other political subdivisions 
of one or more States) ; Indian tribes; and boards or commissions 
established under the laws of any State to finance specific capital 
improvement projects. 

(c) The term "development cost" means the cost of constructing the 
facility and of acquiring the land on which it is located, including 
necessary site improvements to permit its use as a site for the facility. 

LABOR STANDARDS 

Sec. 707. All laborers and mechanics employed by contractors or 
subcontractors on projects assisted under sections 702 and 703 shall 
be paid wages at rates not less than those prevailing on similar con- 
struction in the locality as determined by the Secretary of Labor in 
accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a — 
276a-5) . No such project shall be approved without first obtaining ade- 
quate assurance that these labor standards will be maintained upon the 
construction work. The Secretary of Labor shall have, with respect to 
the labor standards specified in this section, the authority and func- 
tions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 
3176; 64 Stat. 1267; 5 U.S.C. 133z-15), and section 2 of the Act of 
June 13, 1934, as amended (48 Stat. 948; 40 U.S.C. 276c). 



1165 



§ 708 PUBLIC FACILITIES GRANTS 

APPROPRIATIONS 

Sec. 708. (a) There are authorized to be appropriated for each fiscal 
year commencing after June 30, 1965, and ending prior to July 1 1969, 
not to exceed (1) $200,000,000 ^ (or $350,000,000 in the case of the fiscal 
year commencing July 1, 1968) for grants under section 702, (2) 
$50,000,000 for grants under section 703, and (3) $25,000,000 for grants 
under section 704. In ^ addition, there is authorized to be appropriated 
for grants under section 702 not to exceed $115,000,000 for the fiscal 
year commencing July 1, 1969, and ® not to exceed $100,000,000 for the 
fiscal year commencing July 1, 1970. In addition,* upon the enactment 
of the Emergency Community Act of 1970, there is authorized to be 
appropriated for grants under section 702 not to exceed $1,000,000,000 
for the fiscal year commencing July 1, 1970. In addition * there is 
authorized to be appropriated for the fiscal year commencing July 1, 
1971, not to exceed $50,000,000 for grants under section 703. In addition, 
there are authorized to be appropriated for the fiscal year commencing 
July 1, 1973, not to exceed $40,000,000 for grants under section 703.« 

(b) Any amounts appropriated under this section shall remain 
available until expended, and any amounts authorized for any fiscal 
year under this section but not appropriated may be appropriated for 
any succeeding fiscal year commencing prior to July 1, 1974.^ 
* * * * * * * 

Approved August 10, 1965. 



iSec. 605(b), Housing and Urban Development Act of 1968, Public Law 90-448, 
approved Aug. 1, 1968, added "(or $350,000,000 in the case of the fiscal year commencing 
July 1. 1968)". 

»Sec. 605(b), Housing and Urban Development Act of 1968, Public Law 90-448, ap- 
proved Aug. 1, 1968, added the grant authorization of $115,000,000 for the fiscal year 
commencing July 1, 1969. 

*See. 305(c), Housing and Urban Development Act of 1969, Public Law 91-152, ap- 
proved December 24, 1969, 83 Stat. 379, 391, added the remainder of this sentence. 

* Sec. 3(a). Emergency Community Pacilltles Act of 1970, Public Law 91-431, effective 
without the President's signature October 6, 1970, 84 Stat. 886, added the grant authori- 
zation of $1,000,000,000 for the fiscal year commencing July 1, 1970. 

Sec. 2 (a) and (b). Emergency Community Facilities Act of 1970, reads as follows; 

"Sec. 2, (a) The Congress finds that a large number of municipalities and other entitles 
of local government throughout the Nation are unable to finance construction of vital and 
urgently needed public facilities because of the shortage of funds for long-term borrowing. 

"(b) The Congress further finds that there is an immediate need for such facilities in 
order to provide basic safeguards for the health and well-being of the people of the United 
States, to check widespread pollution of irreplaceable water sources, and to provide an 
effective and practical method of combating rising unemployment." 

BSec. 304(a). Housing and Urban Development Act of 1970, Public Law 91-609 (ap- 
proved December 31, 1970, 84 Stat. 1770. 1780, added the last sentence of this subsection. 

•Sec. 8(a) of Public Law 93-117, 87 Stat 421, approved October 2, 1973, added this 
sentence to the end of this subsection. 

'Sec. 3(b). Emergency Community Facilities Act of 1970. Public Law 91-431, effective 
without the President's signature October 6, 1970, 84 Stat 886, and sec. 304(b), Housing 
and Urban Development Act of 1970, Public Law 91-609, approved December 31, 1970, 
84 Stat 1770, 1780, each substituted "July 1, 1972" for "July 1, 1971". Sec. 3 of Public 
Law 92-335, approved July 1, 1972, 86 Stat 405. substituted "September 30. 1972" for 
"July 1, 1972", Sec. 8(b) of Public Law 93-117, 87 Stat 421, approved October 2, 1973, 
substituted "July 1, 1974", for "September 30. 1972". 



1166 



§101 

MODEL CITIES PROGRAM 

EXCERPTS, DEMONSTRATION CITIES AND METROPOLITAN 
DEVELOPMENT ACT OF 1966 

[Public Law 89-754, 80 Stat. 1255, 42 U.S.C. 3301] 

TITLE I— COMPREHENSIVE CITY DEMONSTRATION 

PROGRAMS 

FINDINGS AND DECLARATION OF PURPOSE 

Sec. 101. The Congress hereby finds and declares that improving the 
quality of urban life is the most critical domestic problem facing the 
United States. The persistence of widespread urban slums and blight, 
the concentration of persons of low income in older urban areas, and 
the unmet needs for additional housing and community facilities and 
services arising from rapid expansion of our urban population have 
resulted in a marked deterioration in the quality of the environment 
and the lives of large numbers of our people while the Nation as a 
whole prospers. 

The Congress further finds and declares that cities, of all sizes, do 
not have adequate resources to deal effectively with the critical prob- 
lems facing them, and that Federal assistance in addition to that now 
authorized by the urban renewal program and other existing Federal 
grant-in-aid programs is essential to enable cities to plan, develop, and 
conduct programs to improve their physical environment, increase 
their supply of adequate housing for low- and moderate-income people, 
and provide educational and social servdces vital to health and welfare. 

The purposes of this title are to provide additional financial and 
technical assistance to enable cities of all sizes (with equal regard to 
the problems of small as well as large cities) to plan, develop, and 
carry out locally prepared and scheduled comprehensive city demon- 
stration programs containing new and imaginative proposals to rebuild 
or revitalize large slum and blighted areas; to expand housing, job, 
and income opportunities ; to reduce dependence on welfare payments ; 
to improve eaucational facilities and programs ; to combat disease and 
ill health ; to reduce the incidence of crime and delinquency ; to enhance 
recreational and cultural opportunities; to establish better access be- 
tween homes and jobs; and generally to improve living conditions for 
the people who live in such areas, and to accomplish these objectives 
through the most effective and economical concentration and coordi- 
nation of Federal, State, and local public and private efforts to improve 
the quality of urban life. 

BASIC AUTHORirr 

Sec. 102. The Secretary of Housing and Urban Development ( here- 
inafter referred to as the "Secretary") is authorized to make grants 



1167 



§ 103 MODEL CITIES 

and provide technical assistance, as provided by this title, to enable 
city demonstration agencies (as defined in section 112(2) ) to plan, de- 
velop, and carry out comprehensive city demonstration programs in 
accordance with the purposes of this title. 

ELIGIBILITT FOR ASSISTANCE 

Sec. 103. (a) A comprehensive city demonstration program is eli- 
gible for assistance under sections 105 and 107 only if — 

(1) physical and social problems in the area of the city covered 
by the program are such that a comprehensive city demonstration 
program is necessary to cariy out the policy of the Congress as ex- 
pressed in section 101 ; 

(2) the program is of sufficient magnitude to make a substantial 
impact on the ph;7sical and social problems and to remove or arrest 
blight and decay in entire sections or neighborhoods ; to contribute 
to the sound development of the entire city ; to make marked prog- 
ress in reducing social and educational disadvantages, ill health, 
underemployment, and enforced idleness; and to provide educa- 
tional, health, and social services necessary to serve the poor and 
disadvantaged in the area, widespread citizen participation in the 
program, maximum opportunities for employing residents of the 
area in all phases of the program^ and enlarged opportunities for 
work and training ; 

(3) the program, including rebuilding or restoration, will con- 
tribute to a well-balanced city with a substantial increase in the 
supply of standard housing of low and moderate cost, maximum 
opportimities in the choice of housing accommodations for all 
citizens of all income levels, adequate public facilities (including 
those needed for education, health and social services, transporta- 
tion, and recreation), commercial facilities adequate to serve the 
residential areas, and ease of access between the residential areas 
and centers of employment ; 

(4) any program which includes a transportation component 
as a project or activity to be undertaken meets the requirements 
of section 3(e) of the Urban Mass Transportation Act of 1964; ^ 

(5) the various projects and activities to be undertaken in con- 
nection with such programs are scheduled to be initiated within 
a reasonably short period of time ; adequate local resources are, 
or will be available for the completion of the program as sched- 
uled, and, in the carrying out of the program, the fullest utiliza- 
tion possible will be made of private initiative and enterprise; 
administrative machinery is available at the local level for carry- 
ing out the program on a consolidated and coordinated basis; 
substantive local laws, regulations, and other requirements are, 
or can be expected to be, consistent with the objective of the 
program ; there exists a relocation plan meeting the requirements 
of the regulations referred to in section 107; the local governing 
body has approved the program and, where appropriate, appli- 
cations for assistance under the program ; agencies whose coopera- 

1 Sec. 105 of the National Mass Transportation Assistance Act of 1974, Public Law 
93-503, 88 Stat. 1566, approved November 26, 1974, amended section 103(a) of the 
Demonstration Cities and Metropolitan Development Act of 1966, by redesignating para- 
graphs (4) and (5) as paragraphs (5) and (6) and inserting a new paragraph (4). 



1168 



MODEL aTIES §104 

tion is necessary to the success of the program have indicated 
their intent to furnish such cooperation ; the program is consistent 
with comprehensive planning for the entire urban or metropolitan 
area; and the locality will maintain, during the period an ap- 
proved comprehensive city demonstration program is being car- 
ried out, a level of aggregate expenditures for activities similar 
to those being assisted under this title which is not less than the 
level of aggregate expenditures for such activities prior to initia- 
tion of the comprehensive city demonstration program; and 

(6) the program meets such additional requirements as the 
Secretary may establish to carry out the purposes of this title: 
Provided^ That the authority of the Secretary under this para- 
graph shall not be used to impose criteria or establish require- 
ments except those which are related and essential to the specific 
provisions of this title. 

( b ) In implementing this title the Secretary shall — 

(1) emphasize local initiative in the planning, development, 
and implementation of comprehensive city demonstration pro- 
grams ; 

(2) insure, in conjunction with other appropriate Federal de- 
partments and agencies and at the direction of the President, 
maximum coordination of Federal assistance provided in connec- 
tion with this title, prompt response to local initiative, and maxi- 
mum flexibility in programing, consistent with the requirements 
of law and sound administrative practice; and 

(3) encourage city demonstration agencies to (A) enhance 
neighborhoods b5[ applying a high standard of design, (B) main- 
tain, as appropriate, natural and historic sites and distinctive 
neighborhood characteristics, and (C) make maximum possible 
use of new and improved technology and design, including cost 
reduction techniques. 

(c) The preparation of demonstration city programs should in- 
clude to the maximum extent feasible (1) the performance of analyses 
that provide explicit and systematic comparisons of the costs and 
benefits, financial and otherwise, of alternative possible actions or 
courses of action designed to fulfill urban needs; and (2) the estab- 
lishment of programing systems designed to assure effective use of 
such analyses by city demonstration agencies and by other govern- 
ment bodies. 

(d) Nothing in this section shall authorize the Secretai'y to require 
(or condition the availability or amount of financial assistance au- 
thorized to be provided under this title upon) the adoption by any 
community of a program (1) by which pupils now resident in a school 
district not witliin the confines of the area covered by the city demon- 
stration program shall be transferred to a school or school district 
including all or part of such area, or (2) by which pupils now resident 
in a school district within the confines of the area covered by the city 
demonstration program shall be transferred to a school or school dis- 
trict not incl uding a part of such area. 

FINANCIAL ASSISTANCE FOR PLANNING COMPREHENSIVE CITT 
DEMONSTRATION PROGRAMS 

Sec. 104. (a) The Secretary is authorized to make grants to, and to 
contract with, city demonstration agencies to pay 80 per centum of 

1169 



§105 MODEL CITIES 

the cost of planning and developing comprehensive city demonstration 
programs. 

(b) Financial assistance will be provided under this section only if 
(1) the application for such assistance has been approved by the local 
governing body of the city, and (2) the Secretary has determined 
that there exist (A) administrative machinery through which co- 
ordination of all related planning activities of local agencies can be 
achieved, and (B) evidence that necessarj^ cooperation of agencies 
engaged in related local planning can be obtained. 

FINANCIAL ASSISTANCE FOR APPROVED COMPREHENSIVE CITY 
DEMONSTRATION PROGRAMS 

Sec. 105. (a) The Secretary is authorized to approve comprehen- 
sive city demonstration programs if, after review of the plans, he de- 
termines that such plans satisfy the criteria for such programs set 
forth in section 103. 

(b) The Secretary is authorized to make grants to, and to contract 
with, city demonstration agencies to pay 80 per centum of the cost of 
administering approved comprehensive city demonstration programs, 
but not the cost of administering any project or activity assisted 
under a Federal grant-in-aid program. 

(c) To assist the city to carry out the projects or activities included 
within an approved comprehensive city demonstration program, the 
Secretary is authorized to make grants to the city demonstration 
agency of not to exceed 80 per centum of the aggregate amount of non- 
Federal contributions otherwise required to be made to all projects or 
activities assisted by Federal grant-in-aid programs (as defined in 
section 112(1) ) which are carried out in connection with such demon- 
stration pro-am : Provided^ That no Federal grant-in-aid program 
shall be considered to be carried out in connection with such demon- 
stration program unless it is closely related to the physical and social 
problems in the area of the city covered by the program and unless 
it can reasonably be expected to have a noticeable effect upon such 
problems. The specific amount of any such grant shall take into ac- 
count the number and intensity of the economic and social pressures 
in the sections or neighborhoods involved, such as those involving or 
resulting from population density, poverty levels, unemployment rate, 
public welfare participation, educational levels, health and disease 
characteristics, crime and delinquency rate, and degree of substandard 
and dilapidated housing. The amount of non-Federal contribution 
required for each project in a Federal grant-in-aid program shall be 
certified to the Secretary hj the Federal department or agency (other 
than the Department of BLousing and Urban Development) adminis- 
tering such program, and the Secretary shall accept such certification 
in computing the grants hereunder. 

(d) Grant funds provided to assist projects and activities included 
within an approved comprehensive city demonstration program pur- 
suant to subsection (c) of this section shall be made available to assist 
new and additional projects and activities not assisted under a Fed- 
eral grant-in-aid program. To the extent such funds are not neces- 
sary to support fully such new and additional projects and activities, 
they may be used and credited as part or all of the required non-Fed- 
eral contribution to projects or activities, assisted under a Federal 



1170 



MODEL CITIES §107 

^rant-in-aid program, which are part of an approved comprehensive 
city demonstration program. Such grant funds, however, shall not 
be used 

(1) for the general administration of local governments; or 

(2) to replace non-Federal contributions in any federally aided 
project or activity included in an approved comprehensive city 
demonstration program, if prior to the filing of an application for 
assistance under section 104 an agreement has been entered into 
with any Federal agency obligating such non-Federal contribu- 
tions with respect to such project or activity. 

TECHNICAL ASSISTANCE 

Sec. 106. The Secretary is authorized to undertake such activities as 
he determines to be desirable to provide, either directly or by contracts 
or other arrangements, technical assistance to city demonstration agen- 
cies to assist such agencies in planning, developing, and administering 
comprehensive city demonstration programs. 

RELOCATION REQUIREMENTS AND PAYMENTS 

Sec 107. (a) A comprehensive city demonstration program shall 
include a plan for the relocation of individuals, families, business con- 
cerns, and nonprofit organizations displaced or to be displaced in the 
carrying out of such program. The relocation plan shall be consistent 
with regulations prescribed by the Secretary to assure that (1) the pro- 
visions and procedures included in the plan meet relocation standards 
equivalent to those prescribed under section 105 (c) of the Housing Act 
of 1949 with respect to urban renewal projects assisted under title I of 
that Act, and (2) relocation activities are coordinated to the maximum 
extent feasible with the increase in the supply of decent, safe, and sani- 
tary housing for families and individuals of low or moderate income, 
as provided under the comprehensive city demonstration program, or 
otherwise, in order to best maintain the available supply of housing for 
all such families and individuals throughout the city. 

(b) (1) To the extent not otherwise authorized under any Federal 
law, financial assistance extended to a city demonstration agency under 
section 105 shall include grants to cover the full cost of relocation pay- 
ments, as herein defined. Such grants shall be in addition to other fi- 
nancial assistance extended to such agency under section 105. 
Repealed.^ 

(2) The term "relocation payments" means paj^ments by a city dem- 
onstration agency to a displaced individual, family, business concern, 
or nonprofit organization which are made on such terms and conditions 
and subject to such limitations (to the extent applicable, but not in- 
cluding the date of displacement) as are provided for relocation pay- 
ments, at the time such payments are approved, by section 114 (b), (c), 
(d), and (e) of the Housing Act of 1949 with respect to projects 
assisted under title I thereof. Repealed.^ 

1 Sees. 107 (b) and (c) repealed by sec. 220(a)(9) of the Uniform Relocation Assistance 
and Real Property Acquisition Policies Act of 1970, Public Law 91-646, approved Janu- 
ary 2, 1971, 84 Stat. 1894, 1903. However, this repeal Is not Immediately effective in all 
States. See Sec. 221 of the Uniform Relocation Assistance and Real Property Acquisition 
Policies Act of 1970. 



1171 



§110 MODEL CITIES 

(c) Subsection (b) shall not be applicable with respect to any dis- 
placement occurring prior to the date of the enactment of this 
Act. Kepealed.* 

CONTINUED AVAILABILITY OF FEDERAL GRANT-IN-AID PROGRAM FUNDS 

Sec. 108. Notwithstanding any other provision of law, unless here- 
after enacted expressly in limitation of the provisions of this section, 
funds appropriated for a Federal grant-in-aid program which are 
reserved for any projects or activities assisted imder such grant-in-aid 
program and undertaken in connection with an approved comprehen- 
sive city demonstration program shall remain available until expended. 

CONSULTATION 

Sec. 109. In carrying out the provisions of this title, including the 
issuance of regulations, the Secretary shall consult with other Federal 
departments and agencies administering Federal grant-in-aid pro- 
grams. The Secretary shall consult with each Federal department 
and agency affected by each comprehensive city demonstration pro- 
gram before entering into a commitment to make grants for such 
program under section 105. 

LABOR STANtDARDS 

Sec. 110. (a) All laborers and mechanics employed by contractors 
or subcontractors in the construction, rehabilitation, alteration, or 
repair of projects which — 

(1) are federally assisted in whole or in part imder this title 
and 

(2) are not otherwise subject to section 212 of the National 
Housing Act, section 16(2) of the United States Housing Act of 
1937, section 109 of the Housing Act of 1949, or any other provi- 
sion of Federal law imposing labor standards on federally assisted 
construction, 

shall be paid wages at rates not less than those prevailing on similar 
construction in the locality as determined by the Secretary of Labor 
in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a — 
276a-5) : Provided^ That this section shall apply to the construction, 
rehabilitation, alteration, or repair of residential property only if such 
residential property is designed for residential use for eight or more 
families. No financial assistance shall be extended to any such proj- 
ects unless adequate assurance is first obtained that these labor stand- 
ards will be maintained upon the construction work. 

(b) The Secretary of Labor shall have, with respect to the labor 
standards specified in subsection (a), the authority and functions set 
forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 
64 Stat. 1267; 5 U.S.C. 133z-15), and section 2 of the Act of June 13, 
1934, as amended (48 Stat. 948 ; 40 U.S.C. 276c) , and the Contract 
Work Hours Standards Act (76 Stat. 357) . 

^ See footnote 1 on previous page. 



1172 



MODEL CITIES §111 

APPROPRIATIONS ^ 

Sec. 111. (a) There are authorized to be appropriated, for the pur- 
pose of financial assistance - under sections 104 and 106, not to exceed 
$12,000,000 for the fiscal year ending June 30, 1967, not to exceed 
$12,000,000 for the fiscal year ending June 30, 1968, and not to exceed 
$12,000,000 3 for the fiscal year ending June 30, 1969. 

(b) There are authorized to be appropriated, for the purpose of 
financial assistance ^ under sections 105, 106, and 107, not to exceed 
$400,000,000 for the fiscal year ending June 30, 1968, not to exceed 
$500,000,000 for the fiscal year ending June 30, 1969, not to exceed 
$1,000,000,000 ^ for the fiscal year ending June 30, 1970, not to exceed 
$600,000,000 ' for the fiscal year ending June 30, 1971, and not to ex- 
ceed $200,000,000 ^ for the fiscal year ending June 30, 1972. In ' addition, 
there are authorized to be appropriated for such purpose such sums as 
may be necessary for the fiscal year ending June 30, 1975. Under reg- 
ulations prescribed by the Secretary, 10 per centum of the amounts ap- 
propriated pursuant to this subsection for the fiscal year ending June 
30, 1970, and for any fiscal year thereafter shall be used for assistance 
to city demonstration agencies in cities or counties having a population 
>■ 

iThe Supplemental Appropriation Act, 1967, Public Law 89-697. approved October 27, 
1966, 80 Stat. 1057, 1058, appropriated $11,000,000 for financial assistance to planning 
and developing comprehensive city demonstration programs, and .$750,000 for administra- 
tive expenses. The appropriations remain available until June 30, 196S. 

The Independent Offices and Department of Housing and Urban Development Appro- 
priation Act, 1968, Public Law 90-121. approved November 3, 1967, 81 Stat. 341, 355, 
appropriated for the fiscal year 1968, to remain available until June 30. 1969, $12 million 
for financial assistance to planning and developing comprehensive city demonstration 
programs, and $200 million for supplemental grants for the programs. The act also 
appropriated $100 million for urban renewal projects within approved city demonstration 
programs, but did not make these funds available until June 30, 19G9. 

The Independent Offices and Department of Housing and Urban Development Appro- 
priation Act, 1969, Public Law 90-550. approved Oct. 4. 1968, 82 Stat. 937, appropriated 
for the fiscal year 1969, $312.5 million for planning and carrying out model cities programs, 
and $312.5 million for urban renewal projects within approved model cities programs, 
and provided that the appropriations for other than urban renewal programs should 
remain available until June 30. 1970. 

The Independent Offices and Department of Housing and Urban Development Appro- 
priation Act, 1970. Public Law 91-126, approved November 26, 1969, 83 Stat. 221, 237, 
appropriated for fiscal year 1970, to remain available until June 30, 1971, $575 million 
for financial assistance and administrative expenses In carrying out comprehensive city 
demonstration programs as authorized by title I of the Demonstration Cities and Metro- 
politan Development Act of 1966. 

The Independent Offices and Department of Housing and Urban Development Appro- 
priation Act, 1971, Public Law 91-556, approved December 17, 1970, 84 Stat. 1442. 1458, 
appropriated for fiscal year 1971. to remain available until June 30, 1972, $575 million 
for financial assistance and administrative expenses in carrying out comprehensive city 
demonstration programs as authorized by title I of the Demonstration Cities and Metro- 
politan Development Act of 1966. 

« Sec. 301(c). Housing and Urban Development Act of 1970. Public Law 91-609. approved 
December 31, 1970. 84 Stat. 1770, 1780, deleted at this point the words "and administrative 
expense^" 

3 Sec. 1701(a). Housing and Urban Development Act of 1968, Public Law 90-448, 
approved Aug. 1, 1968, 82 Stat. 476, 002, added the authorization of $12 million for the 
fiscal year 1969 

* Sec. 170K'b) Housing and Urban Development Act of 1968, Public Law 90-448, 
approved Aug. 1, 19G8. 82 Stat. 476, 602, added the authorization of $1 billion for the 
fiscal year ending June 30, 1970. , _ ^,, ^ o, ,co 

BSec. 301(a), Housing and Urban Development Act of 1969, Public Law 91-152, 
approved December 24, 1969 83 Stat. 379, 391 added the authorization of $600 million for 
the fiscal year ending June 30. 1971. ^ ^^^ 

« Sec. 301 (a). Housing and Urban Development Act of 1970. Public Law 91-609. approved 
December 31. 1970. 84 Stat. 1770, 1780, added the authorization of $200 million for the 
fiscal vear ending June 30, 1972. The sentence that immediately follows was added by 
sec 361(a), Housing and Urban Development Act of 1969, Public Law 91-152, approved 
December 24. 1969. 83 Stat. 379. 391. „ ^,. ^ 

'Sec. 116(d)(1) of Housing and Community Development Act of 1974, Public Law 93- 
383, 88 Stat. 633, approved August 22, 1974, added this sentence. 



1173 



§112 MODEL CITIES 

(according to the most recent decennial census) of less than 100,000, 
and may be so used (to the extent specifically provided in such regu- 
lations) without regard to the limitation set forth in the first sentence 
of section 105(c). 

(c) ^ Any amounts appropriated under this section shall remain 
available until expended, and any amounts authorized for any fiscal 
year under this section but not appropriated may be appropriated 
for any succeeding fiscal year commencing prior to July 1, 1975. 

DEFINITIONS 

Sec. 112. As used in this title — 

(1) "Federal grant-in-aid program" means a program of Federal 
financial assistance other than loans and other than the assistance 
provided by this title. 

(2) "City demonstration agency" means the city, the county, or any 
local public agency established or designated by the local governing 
body of such city or county to administer the comprehensive city 
demonstration program. 

(3) "City" means any municipality (or two or more municipalities 
acting jointly) or any county or other public body (or two or more 
acting jointly) having general governmental powers. 

(4) "Local" agencies include State agencies and instrumentalities 
providing services or resources to a city or locality, and "local" re- 
sources include those provided to a city or locality by a State or its 
agency or instrumentality. 

******* 

STATE LIMIT 

Sec. 114. Grants made under section 105 for projects in any one 
State shall not exceed in the aggregate 15 per centum of the aggregate 
amount of funds authorized to be appropriated under section 111. 
♦ ♦♦♦••• 

Approved November 3, 1966. 



1 Sec. 1701(c), Housing and Urban Development Act of 1968, Public Law 90-448, 
approved Aug. 1, 1968, 82 Stat. 476, 602, amended subsection (c) to read as set forth In 
the text, except that sec. 301(c), Housing and Urban Development Act of 1969, Public 
Law 91-609, approved December 31, 1970, 84 Stat. 1770, 1780, substituted "July 1, 1971" 
for "July 1970", and sec. 301(b), Housing and Urban Development Act of 1970, Public 
Law 91-609, approved December 31, 1970, 84 Stat. 1770, 1780, substituted "July 1 1972" 
for "July 1, 1971". Prior to the amendment by sec. 1701(c), Housing and Urban Develop- 
ment Act of 1968, supra, subsection ic) provided that appropriations should remain avail- 
able until expended. Sec. 2 of Public Law 92-335, approved July 1, 1972 86 Stat 406 
substituted "September 30, 1972" for "July 1, 1972". Sec. 6 of Public Law 9^117, 87' Stat 



1174 



§401 and §701 

OPEN SPACE LAND AND URBAN 
BEAUTIFICATION 

EXCERPTS FROM HOUSING AND URBAN DEVELOPMENT 
ACT OF 1970 

[Public Law 91-609, 84 Stat. 1781; 42 U.S.C 1500] 

TITLE IV— COXSOLIDATION OF OPEN-SPACE LAND 

PROGRAMS ^ 

Sec. 401. Effective July 1, 1971, title VII of the Housing Act of 
1961 is amended to read as follows ; 

TITLE VII— OPEN-SPACE LAND 

FINDINGS AND PURPOSE 

Sec. 701. (a) The Congress finds that the rapid expansion of the 
Nation's urban areas and the rapid growth of population within such 
areas has resulted in severe problems of urban and suburban living 
for the preponderant majority of the Nation's present and future pop- 
ulation, including the lack of valuable open-space land for recrea- 
tional and other purposes. 

(b) The Congress further finds that there is a need for the addi- 
tional provision of parks and other open space in the built-up portions 
of urban areas especially in low income neighborhoods and commu- 
nities and a need for greater and better coordinated State and local 
efforts to make available and improve open-space land throughout 
entire urban areas. 

(c) The Congress further finds that there is a need for timely 
action to preserve and restore areas, sites, and structures of historic 
or architectural value in order that these remaining evidences of our 
history and heritage shall not be lost or destroyed through the 
expansion and development of the Nation's urban areas. 

(d) It is the purpose of this title to help curb urban sprawl and 
prevent the spread of urban blight and deterioration, to encourage 
more economic and desirable urban development, to assist in preserv- 
ing areas and properties of historic or architectural value, and to 
help provide necessary recreational, conservation, and scenic areas by 
assisting State and local public bodies in taking prompt action to (1) 
provide, preserve, and develop open-space land in a manner consistent 
with the planned long-range development of the Nation's urban areas, 
(2) acquire, improve, and restore areas, sites, and structures of his- 
toric or architectural value, and (3) develop and improfve open space 



1 Title IV of the Housing and Urban Development Act of 1970 rewrttes tttle VII of the 
Housing Act of 1961 to consolidate the various separate programs under that "tie (open- 
space, urban beaufiflcatlon. and grants for historic preservation) Into a simple program of 
grants to (1) acquire open-space land and (2) develop open-space land (inclading historic 
preservation). 

1175 

45-705 0-79-21 



§702 OPEN SPACE 

and other public urban land, in accordance with programs to encourage 
and coordinate local public and private efforts toward this end. 

GRANTS FOR ACQUISITION AND FOR DEVELOPMENT OF OPEN-SPACE LAND 

Sec. 702. (a) The Secretary is authorized to make grants to States 
and local public bodies to help finance (1) the acquisition of title to, 
or other interest in, open-space land in urban areas and (2) the 
development of open-space or other land in urban areas for open-space 
uses. The amount of any such grant shall not exceed 50 per centum of 
the eligible project cost, as approved by the Secretary, of such acqui- 
sition or development. Not more than 50 per centum of the non-Federal 
share of such eligible project cost may, to the extent authorized in reg- 
ulations established by the Secretary, be made up by donations of 
land or materials. 

(b) No grants under this title shall be made to (1) defray ordinary 
State or local governmental expenses, (2) help finance the acquisition 
by a public body of land located outside the urban area for which it 
exercises (or participates in the exercise of) responsibilities consistent 
with the purpose of this title, (3) acquire and clear developed land in 
built-up urban areas unless the local governing body determines that 
adequate open-space land cannot be effectively provided through the 
use of existing undeveloped land, or (4) provide assistance for historic 
and architectural preservation purposes, except for districts, sites, 
buildings, structures, and objects which the Secretary of the Interior 
determines meet the criteria used in establishing the National 
Register. 

(c) The Secretary may set such further terms and conditions for 
assistance under this title as he determines to be desirable. 

(d) The Secretary shall consult with the Secretary of the Interior 
on the general policies to be followed in reviewing applications for 
grants under this title. To assist the Secretary in such review, the Sec- 
retary of the Interior shall furnish him (1) appropriate information 
on the status of national and statewide recreation and historic preser- 
vation planning as it affects the areas to be assisted with such grants, 
and (2) the current listing of any districts, sites, buildings, structures, 
and objects significant in American history, architecture, archeology, 
and culture which may be contained on a National Register main- 
tained by the Secretary of the Interior pursuant to other provisions 
of law. The Secretary shall provide current information to the Sec- 
retary of the Interior from time to time on significant program 
developments. 

(e) The Secretary may provide such technical assistance to States 
and local public bodies as may be required to effectively carry out 
activities under this section. 

PLANNING REQUIREMENTS 

Sec 703. The Secretary shall make grants under section 702 only 
if he finds that such assistance is needed for carrying out a unified or 
officially coordinated program, meeting criteria established by him, 
for the provision and development of open-space land which is a part 
of, or is consistent with, the comprehensively planned development 
of the urban area. 



1176 



OPEN SPACE §707 

CONTERSIONS TO OTHER USES 

Sec. 704. No open-space land for the acquisition of which a grant 
has been made under section 702 shall be converted to uses not origi- 
nally approved by the Secretary without his prior approval. Prior 
approval will be granted only upon satisfactory compliance with regu- 
lations established by the Secretary. Such regulations shall require 
findings that (1) there is adequate assurance of the substitution of 
other open-space land of as nearly as feasible equivalent usefulness, 
location, and fair market value at the time of the conversion; (2) the 
conversion and substitution are needed for orderly growth and de- 
velopment; and (3) the proposed uses of the converted and substituted 
land are in accord with the then applicable comprehensive plan for 
the urban area, meeting criteria established by the Secretary. 

C0NVERSI0X8 OF LAND INVOLVING HISTORIC OR ARCHITECTURAL PURPOSES 

Sec. 705. No open-space land involving historic or architectural 
purposes for which assistance has been granted under this title shall 
be converted to use for any other purpose without the prior approval 
of the Secretary of the Interior. 

ACQUISITION OF INTERESTS TO GUIDE URBAN DEVELOPMENT 

Sec. 706. In order to encourage the acquisition of interests in un- 
developed or predominantly undeveloped land which, if withheld from 
commercial, industrial, and residential development, would have spe- 
cial si 2:11: fie a ncc in helping to shape economic and desirable patterns 
of urban growth (including growth outside of existing urban areas 
which is directly related to the development of new communities or 
the expansion and revitalization of existing communities) , the Secre- 
tary may make grants to State and local public bodies for the acquisi- 
tion of such interests in an amount not to exceed 75 per centum of 
the cost of such acquisition. In the case of any interests acquired 
pursuant to this section, the Secretary may approve the subsequent 
conversion or disposition of the land involved without regard to 
other requirements of this title but subject to such terms and condi- 
tions as he determines equitable and appropriate with respect to the 
control of future use and the application or sharing of the proceeds 
or value realized upon sale or disposition. 

LABOR STANDARDS 

Sec. 707. (a) The Secretary shall take such action as may be neces- 
sary to insure that all laborers and mechanics employed by contractors 
or subcontractors in the performance of construction work financed 
with the assistance of grants under this title shall be paid wages at rates 
not less than those prevailing on similar construction in the locality 
as determined by the Secretary of Labor in accordance with the Davis- 
Bacon Act, as amended. The Secretary shall not approve any such 
grant without first obtaining adequate assurance that these labor stand- 
ards will be maintained upon the construction work. 

(b) The Secretary of Labor shall have, with respect to the labor 
standards specified in subsection (a), the authority and functions set 
forth in Reorganization Plan Numbered 14 of 1950 (15 F.E. 3176; 64 

1177 



§708 OPEN SPACE 

Stat. 1267; 5 U.S.C. 13az~15), and section 2 of the Act of June 13, 
1934, as amended (48 Stat. 948 ; 40 U.S.C. 276c) . 

AUTHORIZATION 

Sec. 708. There axe authorized to be appropriated for purposes of 
making grants under this title not to exceed $66O,0OG,Ci00 ^ prior to 
September 30, 1972, plus not to exceed $63,000,000 for the. fiscal year 
beginning July 1, 1973. ^ Any amounts, appropriated under this section 
shall remain availahle- until expended. 

DEFINITIONS 

Sec. 709. As used in this title — 

(1) The term "open-space land'^ means any land located in an 
urban area which has value for (A) park and recreational purposes, 
(B) conservation of land and other natural resources, or (C) historic, 
architectural, or scenic purposes. 

(2) The term "urban area" means any area which is urban in 
character, including those surrounding" areas which, in the judgment 
of the Secretary, form an economic and socially related region, taking 
into consideration such factors as present and future population trends 
and patterns of urban growth, location of transportation facilities 
and systems, and distribution of industrial, commercial, residential, 
governmental, institutional, and other activities. 

(3) The term "State" means any of the several States, the District 
of Columbia, the Commonwealth of Puerto Rico, the territories and 
possessions of the United States. 

(4) The term "local public body" means any public body (includ- 
ing a political subdivision) created by or under the laws of a State or 
two or more States, or a combination of such bodies, and includes 
Indian tribes, bands, groups, and nations (including Alaska Indians, 
Aleuts, and Eskimos) of the United States. 

(5) The term "open-space uses" means any use of open-space land for 
(A) park and recreational purposes, (B) conservation of land and 
other natural resources, or (C) historic, architectural or scenic 
purposes. 

Approved December 31, 1970. 

OPEN SPACE LAND AND URBAN BEAUTIFICATION 

Executive Order 11237 

[30 Fed. Reg. 9433] 

Prescribing Regulations for Coordinating Planning and the 
Acquisition of Land Under the Outdoor Recreation Program 
OF THE Department of the Interior and the Open Space Pro- 
gram OF the Housing and Home Finance Agency 

Whereas the Housing and Home Finance Administrator, herein- 
after referred to as "the Administrator," is authorized under title 

iSec. 8(b) of Public Law 92-213, approved December 22, 1971, 85 Stat. 773, 776, sub- 
stituted "$660,000,000" for "$560,000,000". 

a Sec. 5 of Public Law 92-335, approved July 1, 1972, 86 Stat. 405, substituted "Septem- 
ber 30, 1972" for "July 1, 1972". Sec. 7 of Public Law 93-117. 87 Stat. 421, increased the 
authorization by $63 million for fiscal year beginning July 1, 1973. 

1178 



I 



OPEN SPACE §1 

VII of the Housing Act of 1961 (42 U.S.C. 1500-1500e), hereinafter 
referred to as "title VII," to conduct a program for makiiig grants to 
States and local public bodies for acquiring lands for recreational and 
other purposes ; and 

Whereas title VII provides for consultation by the Administrator 
with the Secretary of the Interior, hereinafter referred to as "the Sec- 
retary," with regard to general policies to be followed in reviewing 
applications for grants for land acquisitions under the program pro- 
vided for in title VII, hereinafter referred to as the "open space pro- 
gram," and provides for the furnishing of information by the Secretary 
on the status of recreational planning for areas to be served by the 
open space land acquired with grants made by the Administrator; and 

Whereas the Secretary is authorized under the Land and Water 
Conservation Fund Act of 1965 (16 U.S.C. 460Z-4— 460Z-11), herein- 
after referred to as "the Conservation Act," to provide financial as- 
sistance to States for planning for outdoor recreation purposes and 
acquiring and developing lands therefor under a program hereinafter 
referred to as the "outdoor recreation program" ; and 

'\^^ereas the Secretarv has been given certain responsibilities under 
the Act of May 28, 1963 (16 U.S.C. 460Z— 460Z-3) and Executive 
Order No. 11017, for promoting the coordination of Federal plans and 
activities generally relating to outdoor recreation ; and 

Whereas the programs authorized by title VII and the Conserva- 
tion Act can be of special help in creating areas of recreation and 
beauty for the citizens of our urban areas ; and 

'Whereas priority is being given to the needs of our growing urbai? 
population by the Secretary in the administration of programs under 
the Conservation Act ; and 

Whereas the primary purpose of the open space program is to help^ 
acquire and preserve open space land which is essential to the proper 
long-range development and welfare of the Nation's urban areas, in 
accordance with plans for the allocation of such land for open space 
purposes; and 

Whereas, to assure the most economic and efficient utilization of 
title VII and the Conservation Act and funds provided in connection 
therewith, it is necessary to provide standards for the guidance of the 
Administrator and the Secretary in the administration of these pro- 
grams as they relate to the acquisition of land for recreational 
purposes : 

Now, therefore, by virtue of the authority vested in me by section 
5(g) of the Conservation Act (16 U.S.C. 460Z-8(g) ), and as President 
of the United States, it is hereby ordered as follows : 

Section 1. Urbanized areas. As used in this order, "urbanized 
area" means an area which is an urbanized area according to the most 
recent decennial census together with such additional adjacent areas 
as the Secretary and the Administrator jointly determine to be appro- 
priate for the accomplishment of the purposes of title VII and the 
Conservation Act in a manner consistent with comprehensive planning 
for orderly metropol itan development. 

Sec. 2. Areas of program concern. In the acquisition of land for 
recreation resources the respective responsibilities of the Administra- 
tor and the Secretary shall be as follows : 

(1) Open space program. With respect to the provision of open 
space land for recreational purposes, the Administrator, through the 

1179 



^5 OPEN SPACE 

•open space program, shall have responsibility primarily for assisting 
in the acquisition of lands or interests therein of utility primarily to 
the urbanized area in which they are located, such as squares, malls, 
and playgrounds, and parks, recreation areas, historic sites, and open 
spaces for scenic purposes. 

(2) Lomd ana water conservation fund program. In addition to 
responsibilities with respect to outdoor recreation resources of state- 
wide and nationwide utility, the Secretary, through the Conservation 
Act program, shall have responsibility primarily for assisting in the 
acquisition of lands for larger regional parks, historic sites, and rec- 
reational and scenic areas to serve residents of urban and other local 
areas. 

Sec. 3. Land and water conservation fund grants in urbanized areas 
and other urhan places. Grants made by the Secretary for the acquisi- 
tion of land in urbanized areas and other urban places for outdoor 
recreation under the Conservation Act shall be for projects which : 

(1) are consistent with the comprehensive statewide outdoor recrea- 
tion plan for the State or States in which the project is to be located: 
Provided^ That the portions of such plan relating to urbanized areas 
shall have been reviewed by the Administrator as to their consistency 
with comprehensive planning for such areas ; 

(2) when located in whole or in part in urbanized areas, meet the 
same requirements with respect to planning and programming as shall 
have been prescribed by the Administrator with respect to projects 
under title VII; and 

(3) when located in urban places according to the most recent de- 
cennial census (other than those included in urbanized areas), reflect 
consideration of comprehensive urban planning being carried on for 
such urban places. 

Sec. 4. Open spa^e grants outside of urbanized areas. Grants made 
by the Administrator for acquisition of land or interests therein for 
recreational purposes under title VII in areas outside of urbanized 
areas shall be for projects which : 

(1) are consistent with planning and programming required under 
Title VH : Provided^ That relevant aspects of such planning and pro- 
gramming shall have been reviewed by the Secretary as to their con- 
sistency, insofar as they are related to the achievement of recreational 
objectives, with the comprehensive statewide outdoor recreation plan ; 
and 

(2) meet the same requirements with respect to planning and pro- 
gramming as shall have been prescribed by the Secretary with respect 
to projects under the Conservation Act. 

Sec. 5. Review, (a) The Administrator, in reviewing plans under 
Section 3 of this Order, shall transmit his comments to the Secretary 
within thirty days, or such other period as may be agreed upon, after 
receipt of such plans. The Secretary shall take such comments into 
consideration before approving such plans and programs. If the Sec- 
retary disagrees with a recommendation of the Administrator, he 
shall so notify the Administrator and provide him, in writing, with his 
reasons therefor. 

(b) The Secretary, in reviewing plans and programs under Section 
4 of this Order, shall transmit nis comments to the Administrator 
within thirty days, or such other period as may be agreed upon, after 



1180 



OPEN SPACE §6 

receipt of such plans and programs. The Administrator shall take 
such comments into consideration before approving grants for acqui- 
sition. If the Administrator disagrees with a recommendation of the 
the Secretary, he shall so notify the Secretary and provide him, in 
writing, with his reasons therefor. 

Sec. 6. Coordinated 'procedures, (a) The Secretary and the Admin- 
istrator shall jointly develop procedures consistent with the purposes 
and requirements of the Conservation Act and Title VII, to carry out 
the provisions of this Order, including procedures for : 

( 1 ) evaluating applications for assistance in acquiring land for pre- 
dominantly recreational purposes under outdoor recreation and open 
space programs ; 

(2) consultation and exchange of information concerning applica- 
tions for, and grants of, assistance for acquisition of land for pre- 
dominantly recreational purposes in urbanized areas under the outdoor 
recreation program and outside of urbanized areas under the open 
space program ; and 

(3) joint and mutual determinations for making grants of assist- 
ance under either the outdoor recreation program or the open space 
program in cases in which unusual circumstances would make de- 
partures from the preceding provisions of this Order desirable for 
reasons of economy, efficiency, or equity. 

(b) IVhenever Ihe Secretary and the Administrator make a joint 
determination pursuant to paragraph (a)(3) of this Section, assistance 
may be provided in accordance with such determination. 

Lyndon B. Johnson. 

The Whtte House, July 27, 1965. 



1181 



§603 

HISTORIC PRESERVATION 
Restoration — Grants 

EXCERPTS FROM DEMONSTRATION CITIES AND METROPOLITAN 
DEVELOPMENT ACT OF 1966 

[Public Law 89-754, 80 Stat. 1255, 1278; 16 U.S.C. 470b-l] 

GRANTS TO NATIONAL TRUST FOR HISTORIC PRESERVATION TO COVER 

RESTORATION COSTS 

Sec. 603. (a) The Secretary of Housing and Urban Development 
is authorized to make grants to the National Trust for Historic Preser- 
vation, on such terms and conditions and in such amounts (not exceed- 
ing $90,000 with respect to any one structure) as he deems appropriate, 
to cover the costs incurred by such Trust in renovating or restoring 
structures which it considers to be of historic or architectural value and 
which it has accepted and will maintain (after such renovation or 
restoration) for historic purposes. 

(b) There are authorized to be appropriated such sums as may be 
necessary for the grants to be made under subsection (a). 

******* 

Approved November 3, 1966. 



ASSISTANCE BY SECRETARY OF THE INTERIOR— ADVISORY COUNCIL 
ON HISTORIC PRESERVATION 

[Public Law 89-665, 80 Stat. 915; 16 U.S.C. 470] 

AN ACT To establish a program for the preservation of additional historic 
properties throughout the Nation, and for other purposes 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ 
The Congress finds and declares — 

(a) that the spirit and direction of the Nation are founded 
upon and reflected in its historic past ; 

(b) that the historical and cultural foundations of the Nation 
should be preserved as a living part of our community life and 
development in order to give a sense of orientation to the Ameri- 
can people ; 

(c) that, in the face of ever-increasing extensions of urban cen- 
ters, highways, and residential, commercial, and industrial devel- 
opments, the present governmental and nongovernmental historic 
preservation programs and activities are inadequate to insure 
future generations a genuine opportunity to appreciate and enjoy 
the rich heritage of our Nation ; and 



1183 



§101 HISTORIC PRESERVATION 

(d) that, although the major burdens of historic preservation 
have been borne and major efforts initiated by private agencies 
and individuals, and both should continue to play a vital role, it is 
nevertheless necessary and appropriate for the Federal Govern- 
meilt to accelerate its historic preservation programs and activi- 
ties, to give maximum encouragement to agencies and individuals 
undertaking preservation by private means, and to assist State 
and local governments and the National Trust for Historic Pres- 
ervation in the United States to expand and accelerate their his- 
toric preservation programs and activities. 

TITLE I 

Sec. 101. (a) The Secretary of the Interior is authorized — 

(1) to expand and maintain a national register of districts, 
sites, buildings, structures, and objects significant in American 
history, architecture, archeology, and culture, hereinafter referred 
to as the National Register, and to grant funds to States for the 
purpose of preparing comprehensive statewide historic surveys 
and plans, in accordance with criteria established by the Secre- 
tary, for the preservation, acquisition, and development of such 
properties ; 

(2) to establish a program of matching grants-in-aid to States 
for projects having as their purpose the preservation for public 
benefit of properties that are significant in American history, 
architecture, archeology, and culture ; and 

(3) to establish a program of matching gTant-in-aid to the 
National Trust for Historic Preservation in the United States, 
chartered by act of Congress approved October 26, 1949 (63 Stat. 
927) , as amended, for the purpose of carrying out the responsibili- 
ties of the National Trust. 

(b) As used in this Act — 

(1) The term "State" includes, in addition to the several States 
of the Union, the District of Columbia, the Commonwealth of 
Puerto Rico, the Virgin Islands, Guam, and American Samoa. 

(2) The term "project" means programs of State and local gov- 
ernments and other public bodies and private organizations and 
individuals for the acquisition of title or interests in, and for the 
development of, any district, site, building, structure, or object 
that is significant in American history, architecture, archeology, 
and culture, or property used in connection therewith, and for its 
development in order to assure the preservation for public benefit 
of any such historical properties. 

(3) The term "historic preservation" includes the protection, 
rehabilitation, restoration, and reconstruction of districts, sites, 
buildings, structures, and objects significant in American history, 
architecture, archeology, or culture. 

(4) The term "Secretary" means the Secretary of the Interior. 
Sec. 102.^ (a) No grant may be made under this Act — 

(1) unless application therefor is submitted to the Secretary in 
accordance with regulations and procedures prescribed by him; 



iSec. 201(1) of Public Law 94-422, 90 Stat 1313, approved September 28, 197«, 
amended sec. 102 to read as set forth in the text. 

1184 



HISTORIC PRESERVATION §102 

(2) unless the application is in accordance with the compre- 
hensive statewide historic preservation plan which has been 
approved by the Secretary after considering its relationship to the 
comprehensive statewide outdoor recreation plan prepared pur- 
suant to the Land and Water Conservation Fund Act of 1965 (78 
Stat. 897) ; 

(3) for more than 50 per centum of the total cost involved, as 
determined by the Secretary and his determination shall be final ; 

(4) unless the grantee has agreed to make such reports, in such 
form and containing such information as the Secretary may from 
time to time require ; 

(5) unless the grantee has agreed to assume, after completion 
of the project, the total cost of the continued maintenance, repair, 
and administration of the property in a manner satisfactory to 
the Secretary ; and 

(6) until the grantee has complied with such further terms and 
conditions as the Secretary may deem necessary or advisable. 

(b) The Secretary may in liis discretion waive the requirements of 
subsection (a), paragraphs (2) and (5) of this section for any grant 
under this Act to the National Trust for Historic Preservation in the 
United States, in which case a grant to the National Trust may 
include funds for the maintenance, repair, and administration of the 
property in a manner satisfactory to the Secretary. 

(c) The Secretary may in his discretion waive the requirements 
of paragraph (3) of subsection (a) of this section for the purposes 
of making grants for the preparation of statewide historic preser- 
vation plans and surv^eys and project plans. Any grant made pursuant 
to this subsection may not exceed 70 per centum of tlie cost of a project, 
and the total of such grants made pursuant to this subsection in any 
one fiscal year may not exceed one-half of the funds appropriated for 
that fiscal year pursuant to section 108 of this Act. 

(d) No State shall be permitted to utilize the value of real property 
obtained before the date of approval of this Act in meeting the 
remaining cost of a project for which a grant is made under this Act, 

Sec. 103. (a) The amounts appropriated and made available for 
grants to the States for comprehensive statewide historic surveys and 
plans under this Act shall be apportioned among the States by the 
SecT'etary on the basis of needs as determined by him.^ 

(b) The amounts appropriated and made available for grants to 
the States for projects under this Act for each fiscal year shall be 
apportioned among the States by the Secretary in accordance with 
needs as disclosed m approved statewide historic preservation plans. 

The Secretary shall notify each State of its apportionment, and 
the amounts thereof shall be available thereafter for payment to such 
State for projects in accordance with the provisions of this Act. Any 
amount of any apportionment that has not been paid or obligated by 
the Secretary during the fiscal year in which such notification is given, 
and for two fiscal years thereafter, shall be reapportioned by the 
Secretary in accordance with this subsection. 

1 Sec. 201(2) of Public Law 94-422, 90 Stat. 1313. approved September 28. 197(T, 
deleted the proviso In section 103(a). Prior to this amendment the proviso read as fol- 
lows : "Provided, however. That the amount granted to any one State shall not exceed 
60 per centum of the total cost of the comprehensive statewide historic survey and plan 
for that State, as determined by the Secretary." 



1185 



J 104 HISTORIC PRESERVATION 

Bec. 104. (a) No grant may be made by the Secretary for or on 
account of any survey or project under this Act with respect to which 
financial assistance has been given or promised under any other Fed- 
eral program or activity, and no financial assistance may be given 
imder any other Federal program or activity for or on account of any 
survey or project with respect to which assistance has been given or 
promised under this Act. 

(b) In order to assure consistency in policies and actions under this 
Act with other related Federal programs and activities, and to assure 
coordination of the planning acquisition, and development assistance 
to States under this Act with other related Federal programs and 
activities, the President may issue such regulations with respect 
thereto as he deems desirable, and such assistance may be provided 
only in accordance with such regulations. 

Sec. 105. The beneficiary of assistance under this Act shall keep such 
records as the Secretary shall prescribe, including records which fully 
disclose the disposition by the beneficiary of the proceeds of such 
assistance, the total cost of the project or undertaking in connection 
with which such assistance is given or used, and the amount and nature 
of that portion of the cost of the project or undertaking supplied by 
other sources, and such other records as will facilitate an effective 
audit. 

Sec. 106. The head of any Federal agency having direct or indirect 
jurisdiction over a proposed Federal or federally assisted undertak- 
mg in any State and the head of any Federal department or independ- 
ent agency having authority to license any undertaking shall, prior 
to the approval of the expenditure of any Federal funds on the under- 
taking or prior to the issuance of any license, as the case may be, take 
into account the effect of the undertaking on any district, site, build- 
ing, structure, or object that is included in or eligible for inclusion in ^ 
the National Register. The head of any such Federal agency shall 
afford the Advisory Council on Historic Preservation established 
under title II of this Act a reasonable opportunity to comment with 
regard to such undertaking. 

Sec. 107. Nothing in this Act shall be construed to be applicable to 
the White House and its grounds, the Supreme Court building and its 
grounds, or the United States Capitol and its related buildings and 
grounds. 

Sec. 108.^ To carry out the provisions of this Act, there is hereby 
established the Historic Preservation Fimd (hereafter referred to as 
the ''fund") in the Treasury of the United States. 

There shall be covered into such fund $24,400,000 for fiscal year 
1977, $100,000,000 for fiscal year 1978, $100,000,000 for fiscal year 
1979, $150,000,000 for fiscal year 1980, and $150,000,000 for fiscal year 
1981, from revenues due and payable to the United States under the 
Outer Continental Shelf Lands xlct (67 Stat. 462, 469), as amended 
(43 U.S.C. 338), and/or under the Act of June 4, 1920 (41 Stat. 813), 
as amended (30 U.S.C. 191), notwithstanding any provision of law 
that such proceeds shall be credited to miscellaneous receipts of the 
Treasury. Such moneys shall be used only to carry out the purposes of 

iSec. 201(3) of Public Law 94-422, 90 Stat. 1313, approved September 28, 1976, added 
the words "or eligible for inclusion in" immediately following "included in". 

-Seo. 201(4) of Public Law 94-422. 00 Stat. 1313, approved September 28, 1976, 
amended section 108 to read as set forth in the text. 



1186 



1 



HISTORIC PRESERVATION §201 

this Act and shall be available for expenditure only when appropri- 
ated by the Congress. Any moneys not appropriated shall remain 
available in the fund until appropriated for said purposes: Provided^ 
That appropriations made pursuant to this paragraph may be made 
without fiscal year limitation. 

TITLE II 

Sec. 201.^ (a) There is established as an independent agency of 
the United States Government an Advisory Council on Historic Pres- 
ervation (hereinafter referred to as the "Council") which shall be 
composed of twenty-nine members as follows: 

(1) The Secretary of the Interior; 

(2) The Secretary of Housing and Urban Development; 

(3) The Secretary of Commerce ; 

(4) The Administrator of the General Services Administration ; 

(5) The Secretary of the Treasury ; 

(6) The Attorney General; 

(7) The Secretary of Agriculture ; 

(8) The Secretary of Transportation; 

(9) The Secretary of State; 

(10) The Secretary of Defense ; 

(11) The Secretary of Health, Education, and Welfare^ 

(12) The Chairman of the Council on Environmental Quality; 

(13) The Chairman of the Federal Council on the Arts and 
Humanities ; 

( 14) The Architect of the Capitol ; 

(15) The Secretary of the Smithsonian Institution ; 

(16) The Chairman of the National Trust for Historic 
Preservation ; 

(17) The President of the National Conference of State His- 
toric Preservation Officers ; and 

(18) Twelve appointed by the President from outside the 
Federal Government. In making these appointments, the Presi- 
dent shall give due consideration to the selection of officers of 
State and local governments and individuals who are signifi- 
cantly interested and experienced in the matters to be considered 
by the Council. 

(b) Each member of the Council specified in paragraphs (1) 
through (17) of subsection (a) may designate another officer of his 
department, agency, or organization to serve on the Council in his 
stead. 

(c) Each member of the Council appointed under paragraph (18) 
of subsection (a) shall serve for a term of ^\^ years from the expira- 
tion of his predecessor's term ; except that the members first appointed 
under that paragraph shall serve for terms of from one to five years, 
as designated by the President at the time of appointment, in such 
manner as to insure that the terms of not less than one nor more than 
two of them will expire in any one year. 

(d) A vacancy in the Council shall not affect its powers, but shall 
be filled in the same manner as the original appointment (and for the 
balance of the unexpired term). 

' Soc. 201(5) of Public Law 94-422, 90 Stat. 1313, approved September 28. 1976, 
amended section 201(a) to read as set forth in the text. 

1187 



J202 HISTORIC PRESERVATION 

(e) The Chairman and the Vice Chairman of the Council shall be 
designated by the President. During the absence or disability of the 
Chairma^n or when the office is vacant, the Vice Chairman shall act m 
the place of the Chairman. ., , m 

(f ) Fifteen members of the Council shall constitute a quorum. 
c>v/- 202 (a) The Council shall — 

n^ advise the President and the Congress on matters relat- 
ing to historic preservation; recommend measures to coordinate 
activities of Federal, State, and local agencies and private institu- 
tions and individuals relating to historic preservation; and ad- 
vise on the dissemination of information pertammg to such 

(2) encourage, in cooperation with the National Trust for His- 
toric Preservation and appropriate private agencies, public in- 
terest and participation in historic preservation ; 

(3) recommend the conduct of studies m such areas as the ade- 
quacy of legislative and administrative statutes and regulations 
pertaining to historic preservation activities of State and local 
governments and the effects of tax policies at all levels of govern- 
ment on historic preservation ; ^ ^c . ^^ ^ 

(4) advise as to guidelines for the assistance of btate and local 
governments in drafting legislation relating to historic preserva- 
tion; and 

(5) encourage, in cooperation with appropriate public and pri- 
vate agencies and institutions, training and education in the field 
of historic preservation. 

(b) The Council shall submit annually a comprehensive report of 
its activities and the results of its studies to the President and the Con- 
gress and shall from time to time submit such additional and special 
reports as it deems advisable. Each report shall propose such legis- 
lative enactments and other actions as, in the judgment of the Council, 
are necessary and appropriate to carry out its recommendations. 

Sec. 203. The Council is authorized to secure directly from any 
department, bureau, agency, board, commission, office, independent es- 
tablishment or instrumentality of the executive branch of the Federal 
Government information, suggestions, estimates, and statistics for the 
purpose of this title; and each such department, bureau, agency, 
board, commission, office, independent establishment or instrumental- 
ity is authorized to furnish such information, suggestions, estimates, 
and statistics to the extent permitted by law and within available 
funds. 

Sec. 204. The members of the Council specified in paragraphs (1) 
through (17) ^ of section 201 (a) shall serve without additional compen- 
sation. The members of the Council appointed under paragraph (18)^ 
of section 201 (a) shall receive $100 per diem when engaged in the per- 
formance of the duties of the Council. All members of the Council 
shall receive reimbursement for necessary traveling and subsistence 
expenses incurred by them in the performance of the duties of the 
Council. 



V 



^.lifn «?%S"\wh?"ff"^ ^T ^^-^^K ^^ S***- 1313, approved September 28. 1976. 
deleted <10) in the first sentence and Inserted "(17)" and deleted "(17)" in the second 
sentence and inserted "(18) . 



1188 



HISTORIC PRESERVATION §206 

Sec. 205.^ (a) There shall be an Executive Director of the Council 
who shall be appointed in the competitive service by the Chairman 
with the concurrence of the Council. The Executive Director shall 
report directly to the Council and perform such functions and duties 
as the Council maj prescribe. 

(b) The Council shall have a General Counsel, who shall be 
appointed by the Executive Director. The Greneral Counsel shall report 
directly to the Executive Director and serve as the Council's legal 
advisor. The Executive Director shall appoint such other attor- 
neys as may be necessary to assist the General Counsel, represent the 
Council in courts of law whenever appropriate, assist the Department 
of Justice in handling litigation concerning the Coimcil in courts of 
law, and perform such other legal duties and functions as the Execu- 
tive Director and the Coimcil may direct. 

(c) The Executive Director of the Council may appoint and fix the 
compensation of such officers and employees in the competitive service 
as are necessary to perform the functions of the Council at rates not 
to exceed that now or hereafter prescribed for the highest rate for 

frade 15 of the General Schedule under section 5332 of title 5, United 
tates Code: Provided^ Jvowever^ That the Executive Director, with 
the concurrence of the Chairman, may appoint and fix the compensa- 
tion of not to exceed five employees in the competitive service at 
rates not to exceed that now or hereafter prescribed for the highest 
rate of grade 17 of the General Schedule under section 5332 of title 5, 
United States Code. 

(d) The F.xecutivG Director shall have power to appoint and fix 
the compensation of such additional personnel as may be necessary to 
carry out its duties, without recrard to the provisions of the civil serv- 
ice laws and t